Cyberjaya, 26 July 2024 - DXN Holdings Bhd. (“DXN” or the “Company”) [德信控股], a leading global manufacturer of nutraceutical products, has announced the first quarter financial results for the financial year ending 28 February 2025 (“1QFY25”) for the Company and its subsidiaries (“DXN Group” or the “Group”).

The Group has sustained its growth momentum in 1QFY25, delivering consolidated revenue of RM475.1 million, a 12.0% year-on-year (“YoY”) jump compared to RM424.0 million recorded in the same quarter last year (“1QFY24”). Organic expansion in key markets such as Peru, Bolivia, Mexico, and India continued to be the primary drivers of our sustained growth. This growth resulted from a combination of independent initiatives, high impact events organised by leadership groups, innovative product introductions, and effective marketing campaigns.

DXN Group’s profitability strengthened, with earnings before interest, tax, depreciation & amortisation (“EBITDA”) reaching RM151.9 million, representing a solid 11.0% YoY increase from 1QFY24’s RM136.8 million. Profit before taxation (“PBT”) grew to RM136.3 million from RM124.1 million in 1QFY24, reflecting a 9.8% YoY improvement. Meanwhile, profit after taxation and non-controlling interests (“net profit”) expanded by 10.3% YoY to RM85.6 million from RM77.6 million in 1QFY24, underscoring DXN's continued financial strength.

Executive Chairman and Founder of DXN, Datuk Lim Siow Jin (拿督林孝仁) shared, “Building on our exceptional performance in FY24, fuelled by sustained growth in Latin America and India, we are strategically positioned to enter key markets such as Brazil, Argentina, and Chile. Drawing on our successful marketing strategy, combined with our established foothold in the Latin America region, we aim to replicate success in these promising markets.”

“In FY24, we invested RM119.2 million in capital expenditures (“CAPEX”) to establish new manufacturing facilities in China, India, Dubai, and Mexico. These facilities began commercial production in calendar year 2023, significantly enhancing our production capabilities across a diverse range of products including coffee, tea, carbonated juice, and spirulina. Our recently established manufacturing facilities in Nepal and Bangladesh, which will produce a range of our bestselling coffee-related products, are progressing well, with commercial production expected to commence by the end of 2024.”

“This year, we intend to allocate more than RM125.0 million in CAPEX to further expand our manufacturing capacity. This expansion aimed to accommodate the anticipated demand from new markets like Zambia and Ghana. It is part of our initiative to support the growing demand for our products from our global members.”

“Moving forward, we will continue to prioritise new market expansion, the launch of new innovative products, optimisation of production efficiency, and business resilience. By capitalising on these diverse growth avenues, we are confident in DXN’s ability to deliver sustained value to shareholders,” he concluded.

DXN maintains a robust financial position, with cash and cash equivalents of RM609.2 million exceeding total borrowings of RM140.1 million as of 31 May 2024. Additionally, a healthy net operating cash flow of RM137.8 million was generated in the quarter under review.

In line with its quarterly dividend policy, the Board of Directors has declared a first interim dividend of 0.9 sen per ordinary share for 1QFY25, totalling RM44.8 million. This represents a 52.3% dividend payout ratio based on DXN's 1QFY25 net profit.

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/