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Hai-O’s Q1 net profit jumps 32.5% on improved margins

29 Sep 2020 / 22:33 H.

PETALING JAYA: Hai-O Enterprise Bhd’s net profits rose 32.5% to RM10.26 million for its first quarter ended July 31, from RM7.74 million reported in the same quarter for the previous year attributed to improvements in its operating profit margins from cost optimisation initiatives and favourable change of sales mix.

Revenue for the period stood at RM71.25 million, a 7.8% increase from RM66.06 million reported previously.

According to its Bursa disclosure, the group’s multi level marketing (MLM) division reported a higher pre-tax profit of RM10.1 million for the quarter against RM7.3 million reported previously.

The quarter also saw its wholesale division pre-tax profits increased by 32.4% to RM2.5 million on the back of higher margins and cost optimisation measures.

Meanwhile, its retail division, which was affected by subdued consumer sentiment managed to break even for the quarter due to lower operating costs from shorter operating hours during the recovery movement control order period.

Its other division saw a 21.2% decline in pre-tax profits to RM1 million from RM1.3 million previously.

In regard to its prospects, Hai-O stated it will continue to enhance its digital marketing strategies across all major business segments to tap on opportunities and widen market coverage under the “new normal”.

In response to the challenging business environment and subdued consumer sentiment, it elaborated that it will also roll out more small ticket items.

Despite the challenging business environment, the group expects to remain profitable in the next quarter.

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