Amway India Reports Widened Loss and Revenue Drop in FY25
Amway India's financial performance took a hit in the fiscal year ending March 31, 2025. The company's total loss expanded significantly to Rs 74.25 crore. This marks a sharp increase from the previous year's loss of Rs 53.38 crore.
Revenue and Income See Notable Declines
Revenue from operations fell by 10.56 percent to Rs 1,148.16 crore in FY25. In the prior financial year, this figure stood at Rs 1,283.75 crore. Total income, which includes other sources, also decreased by 9.2 percent to Rs 1,174.85 crore.
These financial details come from a filing by the direct seller. Business intelligence platform Tofler provided access to the data.
Expenses Show Mixed Trends with Overall Reduction
Amway India managed to cut its total expenses by 7.3 percent to Rs 1,249.10 crore in FY25. Several key cost areas saw substantial reductions:
- Advertising and sales promotion spending dropped sharply by 40.6 percent to Rs 36.20 crore.
- Royalty payments to its US-based parent firm decreased by 15.7 percent to Rs 55.43 crore from Rs 65.74 crore in FY24.
- Payments to sole selling agents fell by 2.73 percent to Rs 366.91 crore from Rs 377.22 crore a year earlier.
Segment-Wise Revenue Performance
The company's revenue decline affected all major business segments:
- Nutrition and Wellness, the largest segment, saw revenue fall by 10 percent to Rs 703.58 crore.
- Personal Care, the second largest segment, experienced a 13.6 percent drop to Rs 189.22 crore.
- Home Care revenue decreased by 2.65 percent to Rs 120.29 crore.
- Beauty segment revenue declined by 12 percent to Rs 96.59 crore.
Industry Context and Company Background
The direct selling industry in India has faced slow growth over the past two years. This challenging environment likely contributed to Amway India's struggles.
Amway India Enterprises operates as a wholly owned subsidiary of Alticor Global Holdings Inc., based in Ada, Michigan, USA. Alticor is one of the world's largest direct-selling companies. In India, Amway functions as an unlisted entity.
Despite the current downturn, India remains among Amway's top-ten global markets. The multinational company expects India to eventually rank among its top-five markets worldwide.
