Investor Relations

Cyberjaya, 29 July 2025 – DXN Holdings Bhd. (“DXN” or the “Company”) [德信控股], a leading global manufacturer of nutraceutical products, today announced its unaudited financial results for the first quarter ended 31 May 2025 (“1QFY26”) for the Company and its subsidiaries (“DXN Group” or the “Group”). The first-quarter results reflect sustained profitability, operational efficiency, and a forward-looking ESG strategy, positioning the Group for long-term value creation and strengthened shareholder confidence.

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1QFY26 Financial Performance

Revenue rose to RM479.1 million during the quarter under review, up from RM475.1 million in the corresponding quarter of the previous financial year (“1QFY25”), supported by continued demand in key markets. Underlying sales performance in local currencies remained strong, underscoring the Group’s operational resilience and global appeal, though overall revenue growth was partially offset by unfavourable currency translation effects due to the depreciation of overseas currencies against the Malaysian Ringgit.

The Group sustained its track record of consistent profitability in 1QFY26. Earnings before interest, tax, depreciation, and amortisation (“EBITDA”) stood at RM139.5 million, while profit before taxation (“PBT”) came in at RM123.1 million, compared to RM151.9 million and RM136.3 million respectively in 1QFY25. Net profit attributable to shareholders (“net profit”) was RM73.9 million, versus RM85.6 million in the corresponding quarter last year.

The softer year-on-year (“YoY”) earnings were primarily due to higher foreign exchange losses from the strengthening of the Malaysian Ringgit and the absence of one-off indirect tax refunds recognised in 1QFY25. Excluding these effects, the Group’s core operating performance remained steady, reinforcing its strong and resilient business fundamentals since its listing on Bursa Securities in May 2023.

On a quarter-on-quarter (“QoQ”) basis, the Group recorded a 4.4% increase in revenue, rising from RM458.9 million in the quarter ended 28 February 2025 (“4QFY25”) to RM479.1 million in 1QFY26, supported by stronger sales in Latin America. Profitability moderated, with PBT at RM123.1 million compared to RM132.0 million in the previous quarter, while net profit eased to RM73.9 million from RM83.8 million. The movement in earnings was largely due to foreign exchange losses and the absence of one-off reversals of marketing expenses recognised in 4QFY25.

The Group ended 1QFY26 with cash and cash equivalents of RM546.9 million, while total borrowings stood at RM152.1 million. Operating cash flow remained strong at RM54.7 million for the quarter.

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Creating Value for Shareholders

The Group continues to balance growth investments and shareholder returns, underpinned by its strong cash position and disciplined capital allocation approach. In line with its quarterly dividend policy, the Board has declared a first interim dividend of 0.9 sen per ordinary share for 1QFY26, amounting to RM44.75 million, with payment scheduled for 29 August 2025. This represents a 60.5% payout ratio, underscoring its commitment to delivering value to shareholders.

“Our strength lies not only in our products but in the trust we have cultivated across our 19.9 million-strong registered members. We continue to deliver long-term value through measured growth and disciplined capital allocation,” said Founder and Executive Chairman of DXN, Datuk Lim Siow Jin (拿督林孝仁).

Datuk Dr. Lim Siow Jin also noted: “DXN’s trajectory in 2025 proves that a purpose-led, asset-light business can outperform despite external headwinds. Our Board remains vigilant on governance and risk, including geopolitical disruptions, currency risks, and supply resilience. We continue to evolve our strategy to generate predictable cash flow, support expansion, and enhance shareholder returns.”

He added that DXN’s Board is actively evaluating partnerships to unlock new value and deepen shareholder value.

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Geographic Expansion, Innovation, and Operational Excellence

Datuk Lim Siow Jin added, “Our recent entry into Brazil and Argentina is progressing very well, and we are encouraged by the growth potential in these markets. We are confident in replicating the levels of success achieved in Peru and Bolivia, where our market presence continues to strengthen.”

“DXN’s next phase of growth will be anchored on continued geographic expansion, product diversification, and operational enhancements, particularly in the development of ready-to-eat, ready-to-drink, and ready-to-cook food offerings,” he said.

To support this growth, the Group has undertaken various operational enhancements, including the deployment of automated production lines, an integrated logistics management system, and digital platforms that strengthen member engagement and streamline product fulfilment. The Group has also enhanced raw material traceability and processing efficiency—particularly in ganoderma powder extraction and spirulina cultivation—while continuously upskilling its workforce through internal training and development programmes.

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Responsible Manufacturer with ESG DNA

Chief Executive Officer, Mr. Prajith Pavithran said, “We are also pleased that one of our ESG initiatives has been recognised through the Green Building Index (“GBI”) Certified rating awarded to our Cyberville headquarters in Cyberjaya. Phase 1 achieved a 5-star energy efficiency rating with a Building Energy Intensity of 63 kWh/m³/year, while Phase 2 received a 4.5-star rating at 139 kWh/m³/year in February 2025. This milestone reflects our commitment to green infrastructure and low-carbon development as we expand globally.”

“Beyond infrastructure, we continue to strengthen our supply chain, invest in talent development, and enhance quality and traceability through automation and digital systems. By embedding sustainability into our operations and empowering our people through structured training and ethical practices, we are building a resilient and forward-looking organisation. Our key business direction is to become a global responsible manufacturer, and our ESG efforts are aligned with this vision,” he concluded.

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Awards and Recognition

DXN made its debut on the 2025 Fortune Southeast Asia 500 list, ranking No. 491 among the region’s top companies by revenue. This recognition reflects DXN’s consistent financial growth and expanding global presence in the wellness sector.

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Future Outlook

DXN remains positive on its FY26 prospects despite foreign exchange volatility and broader macroeconomic headwinds. The Group expects to sustain growth momentum in Latin America and South Asia, supported by robust demand, continuous product innovation, and enhanced operational efficiency. DXN’s crisis-resilient, tariff-proof business model—driven by non-cyclical health and wellness products—positions the Group to weather economic downturns and market corrections. These market advantages have enabled DXN to successfully diversify into previously untapped emerging markets.

To support this momentum, DXN is investing in new manufacturing capacity in Peru and Morocco, as well as in Kedah and Kelantan, Malaysia. These developments will enable faster market responsiveness, reduce logistics complexity, and support more sustainable, localised production. They are part of DXN’s long-term strategy to strengthen its global supply network while improving both cost and carbon efficiency.

In parallel, DXN’s development efforts are increasingly aligned with broader regional and socio-economic goals. A recently signed Memorandum of Understanding with Invest Kedah Berhad on 15 July 2025 reinforces DXN’s long-standing commitment to Kedah, where the company was first established. The collaboration includes initiatives in agroforestry, aquaculture, and eco-tourism, aimed at creating new income streams, expanding the sustainable value chain, and contributing to the Greater Kedah 2050 Vision through job creation and inclusive economic participation.

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