DXN 3Q net profit up 16.5% to RM78mil

KUALA LUMPUR: DXN Holdings Bhd will leverage on its extensive global network and diverse health and wellness product range for continued revenue growth, according to non-independent executive chairman and founder Datuk Lim Siow Jin.

“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,” Lim said in a statement.

He said the strategic step enabled the group to broaden its market presence and enhance its current member base in these regions.

“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 added.

In the third quarter ended Nov 30, the wellness products company’s net profit rose 16.5% to RM78.3mil, or earnings per share of 1.57 sen compared with RM67.3mil, or 1.39 sen achieved a year ago.

Revenue for the quarter climbed 2.52% to RM450.3mil against RM439.2mil a year earlier.

DXN posted a higher net profit of RM231.9mil on revenue of RM1.33bil in the first nine months to Nov 30.

Consistent with its dividend payout practice, the board of directors has declared a third interim dividend of 0.9 sen per ordinary share in respect of the financial year ending Feb 29. This dividend amounts to RM44.9 million and will be disbursed on March 8.

As at Nov 30, 2023, the total dividend announced for FY24 amounts to 2.6 sen per ordinary share, equivalent to RM129.6mil. 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.