PETALING JAYA: Amway (Malaysia) Holdings Bhd’s second quarter of financial year 2026 (2Q26) core net profit has rebounded strongly, but persistent top-line weakness continues to cast a shadow over its full-year earnings outlook.
For 2Q26, core net profit surged to between RM6.2mil and RM8.9mil from a low baseline in 2Q25, while profit before tax jumped over 200% year-on-year (y-o-y) to RM11.9mil.
Despite the bottom-line surge, quarterly revenue grew a modest 1.9% y-o-y to RM271.7mil, while cumulative revenue for the first half of financial year 2026 (1H26) fell 4.8% y-o y to RM533.8mil due to softer sales in non-essential product categories.
Cumulatively, 1H26 net profit slid 7.9% y-o-y to RM14.4mil on lower sales volumes, though core profit excluding one-off items rose 18.7% y-o-y to RM18.7mil, according to TA Research.
Research houses remain cautious.
CIMB Research maintained its “reduce” rating with a target price (TP) of RM4.05, while TA Research reiterated its “sell” call with a TP of RM4.67.
Both research houses noted that recent selling price adjustments provide only a temporary margin buffer that cannot replace sustained volume growth.
“High living costs force consumers to prioritise essential items while cutting back on high-margin, big-ticket products like home appliances and premium personal care,” CIMB Research noted.
While CIMB Research expects half-on-half earnings improvement in 2H26 driven by product launches such as AmCell and promotional campaigns for Amway’s 50th anniversary in Malaysia, it projects full-year core net profit to decline 6.3% y-o-y.
