Amway India Enterprises has posted a widened net loss of Rs 52.78 crore for the financial year 2023-24 (FY24), compared to a net loss of Rs 21.72 crore in the previous year. The company’s revenue from operations reached Rs 1,283.75 crore in FY24, reflecting a slight increase from Rs 1,278.69 crore reported in FY23.
Key Financial Highlights for Amway India in FY24
- Total Income: Amway India’s total income, including other income, increased marginally by 0.7%, reaching Rs 1,293.97 crore in FY24, up from Rs 1,285.35 crore in FY23.
- Advertising and Promotional Expenses: The company managed to reduce its advertising and promotional expenses by 25.5% in FY24, lowering it to Rs 61.03 crore from Rs 81.93 crore in FY23.
- Royalty Payments to Parent Company: Amway India’s royalty paid to its US-based parent, Alticor Global Holdings, rose by 4.06% to Rs 65.74 crore in FY24, compared to Rs 63.17 crore in FY23. The company clarified in a statement that no royalty payments had been made during FY24; rather, the amount was accrued in the financial books for the year.
- Expenses: Total expenses for Amway India were recorded at Rs 1,347.37 crore, marking a slight decline of 1.64% from the previous year’s Rs 1,369.55 crore.
Performance Across Key Segments
- Nutrition and Wellness: The Nutrition and Wellness segment performed relatively well, with a marginal increase in revenue, reaching Rs 782.40 crore in FY24 compared to Rs 779.75 crore in FY23.
- Personal Care: Revenue from the personal care segment saw a decline, falling to Rs 219.04 crore from Rs 227.34 crore in the previous year.
- Home Care: Similarly, revenue from home care products decreased to Rs 123.57 crore from Rs 130.43 crore in FY23.
- Beauty: The beauty segment witnessed a notable downturn, with a 13% decline in revenue, from Rs 126.14 crore in FY23 to Rs 109.76 crore in FY24.
- Cookware and Atmosphere Drive: Revenue from the cookware and atmosphere drive categories also saw significant drops of over 50%, falling to Rs 8.17 crore and Rs 3.78 crore, respectively.
Outlook for Amway India
Despite the challenges faced during FY24, Amway India remains optimistic about its future prospects. A company spokesperson mentioned, “Like any organization pursuing its growth journey, Amway India too has gone through challenges that impacted its business, but we are progressing according to our plans.” The spokesperson emphasized Amway India’s importance as a key market for Amway globally and reaffirmed the company’s commitment to the Indian market with a strong focus on health and well-being.
Future Plans for Amway India
Amway India, a wholly-owned subsidiary of Alticor Global Holdings, is positioning itself to continue its growth trajectory in India. The company’s efforts to address its financial challenges while prioritizing health-focused products reflect its strategic move to capture the growing demand in the Indian wellness market.
Conclusion
Amway India’s financial performance in FY24 reveals a mixed outlook, with a widening net loss and fluctuating revenue across several key segments. However, the company remains committed to its long-term growth plans, particularly in the nutrition and wellness sectors, and is determined to strengthen its position in the competitive Indian market.
