CYBERJAYA: DXN Holdings Bhd. (“DXN” or the “Group”), a leading global manufacturer of nutraceutical products has announced the charter of a Gulfstream G550 corporate jet for 12 months to accelerate DXN’s global expansion efforts.
The corporate jet is dedicated to supporting our key management team and high-performing members who have attained “Crown Ambassador” status, facilitating frequent travel across key cities in our overseas markets. This enables the leadership team to efficiently engage and motivate DXN’s 4.9 million active members worldwide as of September 2024 through in-person marketing events, including market activation meetings and member appreciation events, enhancing member motivation and driving sales growth. Additionally, the corporate jet provides greater oversight of DXN Group’s manufacturing facilities and operations worldwide, strengthening our capacity to drive growth across regions.
DXN is a global company, with majority of its sales generated outside Malaysia. The Latin America market is the Group’s top-performing market and leads DXN’s growth, contributing 57.9% of DXN Group’s total sales of RM1,897.8 million in the FYE 29 February 2024 (“FYE 2024”). In FYE 2024, Latin America sales reached RM1,097.9 million, an impressive increase from RM589.8 million in FYE 2021. The Asian market is the Group’s second-largest market, contributing 25.8% of total gross sales in FYE 2024, with growth mainly contributed by robust sales in India.
The Group has 13 manufacturing facilities, of which 11 of them are located outside of Malaysia, with another 2 being constructed in Bangladesh and Nepal. These new facilities are expected to start operating by end-2024. Additional facilities are also planned for the future. DXN’s investment in manufacturing facilities across key markets is essential for managing supply chain and mitigating rising freight costs.
Executive Chairman and Founder of DXN, Datuk Lim Siow Jin said,
“With our business expanding rapidly across multiple continents globally, this corporate jet charter will allow us to operate more effectively, focusing on what matters most, driving sales growth across our fast-growing international markets. Given the vast distances between key locations, the convenience and flexibility of the corporate jet will streamline travel, enhancing efficiency and time management compared to commercial flights.”
“The outlook for DXN in Latin America is highly promising as we prepare for expansion into Brazil. With strong, established markets in neighbouring Peru and Bolivia and a large base of active members, we are well-positioned to extend our business into Brazil. This new market, with a population of over 210 million, around five times larger than Peru and Bolivia combined offers significant growth potential for DXN. We have secured approval for eleven products in the Brazilian market to meet the growing demand for nutraceuticals, particularly among its expanding middle class.”
The corporate jet will enable the leadership team to efficiently engage and motivate members worldwide through in-person marketing events, such as market activation meetings and member appreciation events, which enhances member motivation, leading to better performance and higher sales.
The investment is considered well-justified, as DXN has achieved a 3-year revenue compound annual growth rate (“CAGR”) from FYE 2021 to FYE 2024 of 19.8%, with profit after tax and non-controlling interest (“net profit”) growing at a 3-year CAGR of 17.5%. In FYE 2024, the Group delivered a record high net profit of RM311.0 million on revenue of RM1,897.8 million.
“With our steady growth trajectory and the positive benefits arising from the jet charter, we are confident this investment will add value in terms of growth in sales and profitability well beyond the costs associated with it,” Datuk Lim concluded.
