dividend

KUALA LUMPUR: Leading global manufacturer of nutraceutical products DXN Holdings Bhd. achieved record-breaking growth across key metrics in its fourth quarter (Q4 FY24) and full-year financial results for the year ended 29 February 2024 (FY24). DXN’s revenue surged by 12.6% year-on-year (YoY) to RM1.8 billion, exceeding the RM1.6 billion recorded in FY23. This growth is primarily driven by increased revenue contributions from Latin America and India, underpinned by a collective combination of member-driven conventions and events, the launching of new products and targeted marketing programs. Mirroring the strong topline growth, the company displayed solid improvement in profitability. Its earnings before interest, tax, depreciation & amortisation (EBITDA) came in at RM537.1 million, representing an 8.2% YoY increase from RM496.4 million recorded in FY23. Profit before taxation (PBT) also rose by 5.2% YoY to RM479.0 million from RM455.5 million registered in the previous financial year, while its net profit stood at RM311 million, beating last year’s RM275.4 million and setting an all-time high with a remarkable 12.9% YoY increase. Executive Chairman and Founder of DXN Datuk Lim Siow Jin shared, “We are thrilled to have achieved record-breaking financial results this year, demonstrating our resilient business model and effective growth strategy. “During the year, we have invested RM119.2 million in capital expenditure to support our expansion initiatives. This encompasses the construction of new manufacturing facilities, acquisition of plants and machinery, and strategic land purchases across China, India, Dubai and Peru.” According to Lim, the investments align with DXN’s objective to significantly boost its manufacturing capacity, supporting rapid market growth and driving expansion into new, promising markets. “Our recent entry into Brazil presents a significant new market opportunity within Latin America. With Brazil’s vast population exceeding 200 million, the growth potential is immense. “We are well-poised to capitalise on this opportunity by leveraging our established member network and strong brand presence in neighbouring Latin American countries, such as Mexico, Peru, Bolivia, and Colombia,” he added. Moving forward, Lim said that DXN will continue to sustain its market momentum through continued product innovation via research and development initiatives and by optimising production efficiency for long-term success. On a quarterly basis, the company’s revenue saw a commendable 16.2% increase to RM470.6 million in 4Q FY24, compared to RM405 million in the prior-year corresponding quarter Q4 FY23. EBITDA improved by 6.7% to RM132.6 million from RM124.3 million previously, while net profit rose by a remarkable 43.2% YoY to reach RM79 million from RM55.2 million achieved in Q4 FY23. Consistent with its dividend policy, the Board of Directors has announced a fourth interim dividend of 1 sen per ordinary share for FY24. This dividend amounts to RM49.7 million and will be paid on 30 May 2024. As of 29 February 2024, the total dividend announced for FY24 amounts to 3.6 sen per ordinary share, equivalent to RM179.3 million. This represents a 57.7% payout of DXN’s FY24 net profit, showcasing its commitment and capability to distribute dividends per its dividend policy of at least 50% of the net profit payout.