Cyberjaya, 23 April 2024 - DXN Holdings Bhd. (“DXN” or the “Company”) [德信控股], a leading global manufacturer of nutraceutical products, has announced its fourth quarter (“4QFY24”) and full-year financial results for the year ended 29 February 2024 (“FY24”).

Building on previous successes, DXN achieved record-breaking growth across key metrics in FY24. Revenue surged by 12.6% year-on-year (“YoY”) to RM1.8 billion, exceeding the RM1.6 billion recorded in the previous financial year (“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, launching of new products, and targeted marketing programs.

Mirroring the strong topline growth, the Company displayed solid improvement in profitability. 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. The Company’s profit after taxation and non-controlling interests (“net profit”) stood at RM311.0 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 (拿督林孝仁) 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.”

“These proactive investments align with our objective to significantly boost our manufacturing capacity, supporting rapid growth in our well-established markets 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 potential for growth is immense. We are well-poised to capitalise on this opportunity by leveraging our established member network and strong brand presence in neighboring Latin American countries, such as Mexico, Peru, Bolivia, and Colombia.”

“Moving forward, DXN remains committed to sustaining market momentum through continued product innovation via our research and development initiatives, and by optimising production efficiency for long-term success,” he concluded.

On a quarterly basis, revenue saw a commendable 16.2% increase to RM470.6 million in 4QFY24, compared to RM405.0 million in the prior-year corresponding quarter (“Q4FY23”). EBITDA improved by 6.7% to RM132.6 million from RM124.3 million earlier, while net profit rose by a remarkable 43.2% YoY to reach RM79.0 million from RM55.2 million achieved in Q4FY23.

Consistent with its dividend policy, the Board of Directors has announced a fourth interim dividend of 1.0 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, 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 in accordance with its dividend policy of at least 50% of net profit payout.

The Company boasts a robust financial position, with RM632.8 million in cash and cash equivalents exceeding total loans and borrowings of RM165.4 million as of 29 February 2024. Its financial strength is further underscored by the Company's strong net operating cash inflow of RM361.1 million generated in FY24, coupled with its low level of bank loans, demonstrating a healthy net cash position.

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/