KUALA LUMPUR (Dec 17): Hai-O Enterprise Bhd’s net profit for the second quarter ended Oct 31, 2018 (2QFY18) fell 37% to RM13.6 million, from RM21.44 million a year earlier, on lower sales from its multilevel marketing (MLM) segment.

This lowered earnings per share to 4.68 sen from 7.40 sen previously, the group said in a filing with Bursa Malaysia.

Quarterly revenue fell 25% to RM92.17 million from RM123.53 million a year ago.

Nevertheless, the group declared an interim dividend of four sen per share, albeit lower than the six sen declared a year ago. The payment date will be announced later.

Hai-O said the MLM division saw a drop in revenue and pre-tax profit which was due to higher figures recorded last year, as a result of its successful 25th year anniversary grand sales promotion, higher members’ recruitment and recurring sales of consumer products.

Lower quarterly earnings also brought down the group’s first half (1HFY18) net profit, which fell 37% to RM24.60 million, compared with RM39.30 million reported in the previous year.

Revenue for the cumulative period dropped 31% to RM172.26 million, from RM248.07 million a year ago.

For the second half of the financial year, the group said it will focus on new product development of its MLM division and launch a promotion campaign in light of upcoming festive seasons such as Chinese New Year, which is expected to push revenue up.

Hai-O’s shares closed down three sen or 1.02% today at RM2.90, for a market capitalisation of RM842.13 million.