Photo: Amway World Headquarters in Ada, Michigan.
Amway Corp. on Wednesday released its 2015 financial results, announcing annual sales of $9.5 billion.
Despite constant-dollar sales growth in 70 percent of Amway’s top 20 markets, revenue fell 12 percent from a year ago, hurt by currency fluctuations and soft sales in China, where the economy experienced its slowest growth in 25 years. The company reported similar trends in 2014, when revenue dropped 8 percent to $10.8 billion—a performance that nevertheless secured Amway the No. 1 spot on the 2015 DSN Global 100, a list of the top direct selling companies in the world.
In 2015, the company’s top 10 markets were China, South Korea, United States, Japan, Thailand, Russia, Taiwan, Malaysia, India and Ukraine. Management also singled out Brazil and Mexico as emerging markets that recorded considerable gains.
“We experienced growth in seven of our top 10 markets, and emerging markets in Latin America and elsewhere continue to perform well,” Chairman Steve Van Andel noted in Amway’s report. “Several markets achieved record sales levels in 2015 with others producing their best performance in some time. An increasingly competitive environment in China and unfavorable currency exchange rates mask a positive year overall for Amway globally.”
Nutrition remains a powerhouse category for the company, accounting for 46 percent of 2015 sales. Amway Nutrilite is the world’s leading brand of vitamin, mineral and dietary supplements, according to research by Euromonitor International, and the company last year expanded the line with BodyKey by Nutrilite, a personalized weight-management program. BodyKey utilizes a genetic test or comprehensive, scientific assessment to provide a tailored plan for managing weight.
Beauty and personal care products accounted for 25 percent of sales, and durable products, such as the company’s eSpring water treatment system and Atmosphere air treatment system, made up another 16 percent. The remaining 13 percent was split between home care products and assorted other offerings.
Last year also marked the culmination of Amway’s three-year manufacturing and R&D expansion. The company has poured $335 million into strengthening its global infrastructure, opening five manufacturing facilities and a major R&D site in 2015 alone. Other investments included new digital tools to help Amway Business Owners showcase products and manage their businesses.
In 2016 and beyond, Amway leadership sees plenty of cause for optimism, particularly in light of its 2015 Global Entrepreneurship Report. The report, based on a survey of 50,000 people in 44 countries, quantifies attitudes about business ownership and the entrepreneurial spirit. All told, 75 percent of respondents were positive about starting a business, and that number increased to 81 percent among those 35 and younger.
“Globally, more and more people are seeking an opportunity to do something on their own—whether it’s to earn a little extra or for a bigger commitment to earn more,” said Doug DeVos, Amway President and Chairman of the World Federation of Direct Selling Associations. “We’re well positioned to meet that demand with a low-cost, low-risk business opportunity selling world-class products.”