Cyberjaya, 24 January 2024 - Global health-oriented and wellness consumer product direct selling company, DXN Holdings Bhd. (“DXN” or the “Group”) [德信控股] has announced its third quarter (“3QFY24”) and nine months financial results for the period ended 30 November 2023 (“9MFY24”).

In 9MFY24, DXN delivered solid growth with revenue rising 11.4% year-on-year (“YoY”) to RM1.3 billion, up from RM1.2 billion in the preceding year's corresponding period (“9MFY23”). The improvement was primarily driven by continuing sales growth and expansion of DXN’s product range in Latin America and India, positive post-pandemic market sentiment, active members’ activities, and product promotions.

Meanwhile, the Group achieved higher earnings before interest, tax, depreciation & amortisation (“EBITDA”) of RM404.5 million, a commendable 8.7% increase YoY from RM372.1 million. Both profit before taxation (“PBT”) and profit after taxation and non-controlling interests (“net profit”) also showed improvements. PBT increased 5.5% YoY to RM362.0 million from RM343.1 million in 9MFY23 while net profit improved 5.3% YoY to RM232.0 million as compared to last year’s corresponding period’s RM220.2 million.

Throughout the period under review, DXN maintained relatively stable EBITDA, PBT, and net profit margins of 30.4%, 27.2%, and 17.4%, respectively, in comparison to 9MFY23’s margins of 31.1%, 28.7%, and 18.4%.

During Q3FY24, revenue saw a healthy 2.5% increase to RM450.3 million, compared to RM439.2 million in the prior year corresponding quarter (“Q3FY23”). Additionally, EBITDA displayed impressive growth, rising by 21.4% to RM134.5 million from RM110.9 million in Q3FY23, while net profit increased by 16.5% YoY to reach RM78.4 million from RM67.3 million in Q3FY23.

Non-Independent Executive Chairman and Founder of DXN, Datuk Lim Siow Jin (拿督林孝仁) shares, “The establishment of new production facilities in China, India and Dubai during the year have put us in a strong position to accelerate growth in our existing and new markets such as Latin America and India. This strategic step enables us to broaden our market presence and enhance our current member base in these regions.”

“Furthermore, in October 2023, we celebrated a significant milestone - our 30th anniversary. This achievement stands as a testament to the unwavering support of our dedicated members and the strong leadership of our management team around the world.”

“As we move forward, we will continue to capitalise on our large global network of active members and broad product portfolio of health-oriented and wellness consumer products to drive revenue growth. We are committed to optimising productivity and effectively managing our working capital to strengthen our financial position,” he concluded.

Consistent with its dividend payout practice, the Board of Directors has announced a third interim dividend of 0.9 sen per ordinary share in respect of financial year ending 29 February 2024 (“FY24”). This dividend amounts to RM44.9 million and will be disbursed on 8 March 2024. As at 30 November 2023, total dividend announced for FY24 amounts to 2.6 sen per ordinary share, equivalent to RM129.6 million. This represents a 55.9% payout of DXN’s 9MFY24 net profit, in line with its announced dividend policy entailing the distribution of at least 50% of net profit.

The Group maintains a robust financial position with cash and cash equivalents totaling RM498.6 million, surpassing total loans and borrowings of RM183.3 million as of 30 November 2023. During the nine-month period, the Group generated a positive net operating cash flow of RM228.3 million.

ABOUT DXN HOLDINGS BHD.

Listed on the Main Market of Bursa Securities, DXN is a leading global manufacturer of nutraceutical products, blending the medicinal benefits of natural sources like edible fungi and spirulina with cutting-edge biotechnology. The Company boasts advanced R&D and cultivation facilities to enhance production processes and develop new product innovations. DXN's extensive product portfolio includes fortified food and beverages, health and dietary supplements, as well as personal care and cosmetics. With a significant global market presence, DXN operates across South America, the Middle East, North Africa, and Asia.

For more information, please visit https://www.dxn2u.com/