ADA — Direct-selling giant Amway Corp. reported a slight sales decline in 2022 from the prior year, citing the strength of the U.S. dollar, the sale of an affiliated nutritional supplement company and the company’s withdrawal from Russia.
Excluding a strengthened exchange rate for the U.S. dollar as a result of the Fed’s response to inflation, sales for Amway’s direct-selling business increased 1 percent in 2022, which would have marked a third consecutive year of sales growth.
Amway reported $8.1 billion in sales in 2022, compared to $8.9 billion in 2021. While the company’s U.S. sales declined last year, Amway experienced growth in China and South Korea, two of its top markets. Mainland China is Amway’s largest market, while the company modernized its 25 Cent Ride virtual fitness program to drive growth in South Korea. Amway also is experiencing growing consumer demand in other Southeast Asia markets, including Taiwan, Hong Kong, Malaysia and Vietnam.
The company’s revenues are driven largely by its nutritional products line, including its Nutrilite supplements that represent 56 percent of Amway’s total sales and helped generate 8-percent sales growth for its nutrition products. Nutrilite sales have grown 27 percent over the past three years, CEO Milind Pant said in an interview with MiBiz.
Last year also marked a withdrawal in certain markets for Amway and the recent sale of an affiliate owned by parent company, Alticor Inc. In October 2021, Alticor closed on its sale of global nutritional supplement Metagenics to private equity firm Gryphon Investors for an undisclosed sum.
In March 2022, Amway then announced that it would cease operations in Russia following the invasion of Ukraine. Company officials have said the country’s attack on Ukraine made it “impossible” to do business in Russia.
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