Health and wellness direct selling company DXN Holdings Bhd saw its net profit increased by 16.5% year-on-year (YoY) to reach RM78.4 million for the third quarter ended 30 November 2023 (Q3FY24) from RM67.3 million in Q3FY23.
“Additionally, earnings before interest, tax, depreciation and amortisation (EBITDA) displayed impressive growth, rising by 21.4% to RM134.5 million from RM110.9 million in Q3FY23
“Its revenue also saw a healthy 2.5% increase to RM450.3 million, compared to RM439.2 million in the prior year corresponding quarter (Q3FY23),” it said in a statement today (Jan 24)
For the nine months period ended 30 November 2023 (9MFY24), its net profit improved marginally by 5.3% YoY to RM232 million compared to RM220.2 million last year. PBT also increased 5.5% YoY to RM362 million from RM343.1 million in 9MFY23.
“The group achieved higher EBITDA of RM404.5 million, an 8.7% increase YoY from RM372.1 million with revenue rising 11.4% year-on-year YoY to RM1.3 billion, up from RM1.2 billion in the previous year.
“The improvement was primarily driven by continuing sales growth and expansion of DXN’s product range in Latin America and India, positive post-pandemic market sentiment, active members’ activities, and product promotions,” it said.
For the period under review, DXN said it maintained relatively stable EBITDA, PBT, and net profit margins of 30.4%, 27.2%, and 17.4%, respectively, in comparison to 9MFY23’s margins of 31.1%, 28.7%, and 18.4%.
Founder and non-independent executive chairman Datuk Lim Siow Jin said DXN will leverage on its extensive network and diverse health and wellness product range for continued revenue growth.
“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.
He said this strategic step enables the group to broaden its market presence and enhance our 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.
Consistent with its dividend payout practice, the board of directors has announced a third interim dividend of 0.9 sen per ordinary share in respect of financial year ending 29 February 2024 (FY24).
This dividend amounts to RM44.9 million and will be disbursed on 8 March 2024.
As at 30 November 2023, total dividend announced for FY24 amounts to 2.6 sen per ordinary share, equivalent to RM129.6 million.
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.
