Amway Hungary expects to break even in 2006
The Hungarian unit of Amway, the US seller of home and personal care products, plans to break even on revenue of Ft 6 billion-Ft 7 billion in 2006, after racking up losses of Ft 600 million on revenue of Ft 5.3 billion in 2005, Amway Hungary Kft managing director Péter Gordus said on Thursday.
The targeted revenue is still under the company's sales of about Ft 10 billion in 2003 and 2004, Gordus said. Amway, which sells its products through multi-level marketing, employs just 52 people in Hungary, but has 40,000 distributors or "Independent Business Owners" - private individuals who sell Amway products to friends and acquaintances. Many of these people sell Amway products in Slovakia, Romania and Poland, as well as Hungary, Gordus said. Half of sales are made online, at Amway's internet store, set up in 2001, he added.
Nutritional supplements and vitamins make up 25% of turnover at Amway Hungary, with 25% coming from household detergents and 15%-15% from women's cosmetics and personal care products, Gordus said.
Amway Hungary has generated combined profits of Ft 4 billion since it was set up 15 years ago. All profits are repatriated and used for product development.
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