DXN sure of sustaining growth momentum

PETALING JAYA: Health and wellness-oriented direct selling company DXN Holdings Bhd is confident of sustaining its growth momentum, after its revenue grew by almost 16% in the recently-concluded quarter.

The future growth is expected to partly come from DXN Cyberville, a 10-storey building of 150 apartments, which has commenced operations recently. DXN Cyberville is a wellness and retreat centre.

In a filing with Bursa Malaysia, the group noted that its cultivation facility and production plant in Ningxia, China have also commenced operations.

“In addition, the group has completed the acquisition of a manufacturing entity in Dubai, which is now in operations to support the market in the Middle East,” it said.

Looking ahead, DXN expects to reduce the reliance on external suppliers and have better control over its supply chain, supported by its vertically integrated production facilities.

In the second quarter ended Aug 31, DXN reported a marginal net profit growth of 0.3% year-on-year (y-o-y) to RM76.02mil.

Revenue, on the other hand, rose by 15.7% y-o-y to RM458.31mil, driven by continuing sales growth in Latin America, India and Middle East.

DXN pointed out that its bottom line in the second quarter was partly affected by the higher sales growth in the fortified food and beverage series, which commands a lower gross profit margin.

Apart from that, the group incurred higher operating expenses which was partially offset by lower transportation costs post-Covid-19 pandemic.

DXN’s earnings per share slid to 1.52 sen in the second quarter ended Aug 31, as compared to 1.57 sen a year earlier.

A dividend of 0.9 sen per share was declared for the quarter.

Cumulatively, for the first six months of the financial year 2024, the net profit of DXN edged up by 0.44% to RM153.62mil.

Revenue improved by 16.6% to RM882.29mil, primarily attributable to continuing sales growth in Latin America, India and Middle East.

“The growth was driven by positive market sentiment after the Covid-19 pandemic and product promotion,” stated the group.