KUALA LUMPUR: Hai-O Enterprise Bhd's net profit rose 46% to RM18 million for the third quarter ended Jan 31, 2010 from RM12 million a year ago as it earnings were boosted by its multilevel marketing (MLM) division and higher group rental income.

It said on Friday, March 19 revenue was RM131.28 million, up 29% from RM102.13 million a year ago. Earnings per share were 21.64 sen compared with 14.64 sen. It declared dividend of four sen per share.

For the nine-months ended Jan 31, 2010,revenue rose RM110 million to RM412.23 million from RM302.33 million in the previous corresponding period. Net profit rose 55.3% to RM57.18 million from RM36.48 million.

"The substantial increase in profit was mainly due to higher revenue achieved by the MLM division and higher Group’s rental income received. The wholesale division contributed about 16% to the group’s profit before taxation due to higher total revenue generated during the period.

As for the retail division, it had recorded lower revenue as compared to the preceding year as the Chinese New Year fell in the fourth quarter.

Hai-O said it would continue to organise more advertising and promotion activities such as incentive trip sales campaign and new member recruitment.

"The wholesale and retail divisions will focus on health awareness campaign to a wider range of consumers. Moreover the retail division will continue its ongoing expansion by opening more outlets across Malaysia especially in East Malaysia and develop more of its house brand products," it said.