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Amway India's Losses Widen to Rs 74 Crore as Revenue Declines 10%

Amway India's financial performance deteriorated in FY25, with its net loss widening to Rs 74.25 crore from Rs 53.38 crore the previous year. This was driven by a 10.56% decline in revenue from operations, which fell to Rs 1,148.16 crore. The company implemented aggressive cost-cutting, slashing advertising spend by over 40% and reducing royalty payments to its US parent. All major product segments, including nutrition, personal care, and beauty, reported declining revenues during the fiscal year.

Key Points: Amway India FY25 Loss Widens to Rs 74.25 Crore

  • Loss widened to Rs 74.25 crore
  • Revenue fell 10.6% to Rs 1,148 cr
  • Sharp 40.6% cut in ad spend
  • Nutrition segment revenue down 10%
2 min read

Amway India's loss widens to Rs 74.25 crore in FY25

Amway India's net loss widened to Rs 74.25 crore in FY25 as revenue fell 10.6% to Rs 1,148 crore, despite significant cost-cutting measures.

"Its revenue from operations fell 10.56 per cent to Rs 1,148.16 crore in FY25 - Financial Data via Tofler"

Mumbai, Jan 18

Amway India's losses widened further in FY25 as it reported a total loss of Rs 74.25 crore for the financial year ended March 31, 2025, compared with a loss of Rs 53.38 crore in the previous financial year.

Its revenue from operations fell 10.56 per cent to Rs 1,148.16 crore in FY25 from Rs 1,283.75 crore in FY24, according to financial data accessed through business intelligence platform Tofler.

The company's total income, which includes other income, declined 9.2 per cent to Rs 1,174.85 crore during the year.

Despite the fall in revenue, the company managed to cut several costs during the year. Its spending on advertising and sales promotion dropped sharply by 40.6 per cent to Rs 36.20 crore in FY25.

The royalty paid to its US-based parent company was also reduced by 15.7 per cent to Rs 55.43 crore, compared with Rs 65.74 crore in the previous financial year.

Payments made to Amway India's sole selling agents declined marginally by 2.73 per cent to Rs 366.91 crore in FY25, from Rs 377.22 crore a year earlier.

Overall, the company's total expenses came down 7.3 per cent to Rs 1,249.10 crore during the year, according to the financial data.

Amway India is a wholly owned subsidiary of Alticor Global Holdings Inc, headquartered in Ada, Michigan, and is one of the world's largest direct selling companies. The Indian arm remains an unlisted entity.

Segment-wise, the company saw a decline across all major categories. Revenue from its largest segment, nutrition and wellness, fell 10 per cent to Rs 703.58 crore in FY25.

The personal care segment, the second largest, saw a sharper decline of 13.6 per cent, with revenue at Rs 189.22 crore, as per it's financial data.

Revenue from home care products slipped 2.65 per cent to Rs 120.29 crore, while the beauty segment reported a 12 per cent fall to Rs 96.59 crore during the financial year.

- IANS

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Reader Comments

S
Shreya B
Cutting advertising costs by 40% is a huge red flag. It shows they are pulling back, not fighting to grow. In a competitive market like India, you need visibility. My aunt was an Amway distributor for years but quit because the incentives kept reducing. Sad to see.
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Aman W
The nutrition segment is their biggest and it's down 10%. This is the post-pandemic era where everyone is health conscious! They should be booming. Maybe their messaging isn't connecting with younger Indians who prefer brands like HealthKart or even traditional Ayurveda.
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Priya S
My father still swears by their Nutrilite supplements. But I agree, the business model puts too much pressure on distributors to recruit more people. It feels more like a pyramid scheme than a genuine sales job. Hope they can reform and focus on real retail.
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David E
Working in finance here. Reducing royalty payments to the parent company is interesting. It might be a temporary measure to conserve cash, or it could indicate a renegotiation of terms due to poor performance. The overall cost-cutting is good, but you can't save your way to growth. Revenue decline is the core problem.
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Nisha Z
They need a complete rebranding for the Indian market. The "premium" tag doesn't work when there are so many good, affordable Indian alternatives now. Also, after the pandemic, people are more careful with money. ₹74 crore loss is huge yaar! 😬

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