Amway India Faces Financial Challenges Amid Rising Royalties

Amway India Enterprises reported an increased net loss of Rs 52.78 crore with revenues of Rs 1,283.75 crore in FY'24. There's a notable decrease in advertising expenses and a rise in royalty payments. The company's sectors, including 'Nutrition and Wellness,' showed varied financial performances, with some segments experiencing significant declines.

Amway India Enterprises has reported a wider net loss of Rs 52.78 crore for the fiscal year 2024, accompanied by revenue from operations reaching Rs 1,283.75 crore. The information was disclosed via the company's RoC filing.

The financial performance showcased a slight uptick in total income by 0.7% to Rs 1,293.97 crore. However, the firm saw a notable decrease of 25.5% in advertising promotional expenses to Rs 61.03 crore, contrasting the previous year's Rs 81.93 crore. On the other hand, royalty payments to its US parent company rose by 4.06% to Rs 65.74 crore.

The company's sales across various segments, including 'Personal Care' and 'Beauty,' showed downturns, with revenue in 'Cookware' and 'Atmosphere Drive' segments declining by over 50%. An email to Amway India for comments remained unanswered by press time.

(With inputs from agencies.)