CYBERJAYA: DXN Holdings Bhd. (“DXN” or the “Company”), a leading global manufacturer of nutraceutical products, has announced its second quarter (“2QFY25”) and first half financial results for the financial year ending 28 February 2025 (“1HFY25”) for the Company and its subsidiaries (“DXN Group” or the “Group”).
In 1HFY25, DXN recorded a solid 9.2% year-on-year (“YoY”) revenue growth to RM963.5 million, up from RM882.3 million in the corresponding period last year (“1HFY24”). This growth was primarily driven by sustained sales momentum in key markets, particularly in Latin America, India, and Turkiye, alongside ongoing member engagement, successful product promotions, and an expanded product portfolio in Latin America.
The Group also posted higher earnings before interest, tax, depreciation & amortisation (“EBITDA”) and profit before taxation (“PBT”) of RM277.3 million and RM247.8 million, representing YoY increases of 2.7% and 2.3%, respectively, from RM270.0 million and RM242.2 million in 1HFY24. However, profit after taxation and non-controlling interests (“net profit”) marginally declined to RM151.5 million from RM153.6 million recorded in the same period last year.
In 1HFY25, DXN’s EBITDA, PBT, and net profit margins saw modest decreases to 28.8%, 25.7%, and 15.7%, respectively, compared to 30.6%, 27.5%, and 17.4% in 1HFY24. These contractions are primarily attributed to the appreciation of the Malaysian Ringgit and rising operating costs.
In line with its dividend policy, DXN’s Board of Directors has declared a second interim dividend of 0.8 sen per ordinary share for 2QFY25. This brings the total dividend declared for 1HFY25 to 1.7 sen per share. In total, DXN has declared dividends worth RM84.5 million during this period, representing a payout ratio of 55.8%.
Executive Chairman and Founder of DXN, Datuk Lim Siow Jin shared, “We are pleased to report continued revenue growth in 1HFY25, demonstrating the strength of our business model and the ongoing demand for our products. While profitability margins were impacted by external factors such as foreign exchange fluctuations and increased operating costs, we remain focused on enhancing operational efficiency and exploring new avenues for growth. We are confident in our ability to navigate these challenges and deliver long-term value for our shareholders.”
“To further enhance our production capacity and market reach, we are pleased to announce that our new manufacturing plants in Nepal and Bangladesh are on track to commence operations by the end of FY25. These facilities will complement our existing 13 manufacturing facilities, allowing us to better serve our member base and meet the growing global demand for our products. We are also in the final stages of confirming details for another new plant. Looking ahead, we are focused on expanding into new markets, launching innovative products, optimising production efficiency, and strengthening business resilience to drive sustainable growth and long-term success,” he concluded.
In 2QFY25, revenue rose by 6.6% to RM488.4 million, up from RM458.3 million in the corresponding quarter of the previous year (“2QFY24”). EBITDA experienced a marginal decrease of 5.8%, reaching RM125.4 million compared to RM133.2 million in 2QFY24. Similarly, net profit declined by 13.2% to RM66.0 million, from RM76.0 million in 2QFY24. The lower EBITDA margin was primarily attributable to increased foreign exchange losses resulting from the strengthening of the Malaysian Ringgit, along with higher operating costs.
DXN maintains a strong financial position, with cash and cash equivalents of RM654.6 million as of 31 Aug 2024, exceeding the Company’s total borrowings of RM136.4 million. DXN also generated a healthy net operating cash flow of RM133.3 million in 2QFY25.
