PETALING JAYA: DXN Holdings Bhd (DXN) is positive on its earnings prospects, following a good start to its financial year ending Feb 29, 2024 (FY24).
The health-oriented and wellness direct-selling company’s executive chairman and founder Datuk Lim Siow Jin said the group is optimistic about delivering growth and generating enough cash through its scalable business model moving forward.
For the first quarter ended May 31, 2023 (1Q24), DXN’s revenue stood at RM424mil, an increase by 17.6% year-on-year on the back of continuous sales growth of fortified food and beverages in Latin America and India.
Additionally, DXN attributed the rise in revenue to the depreciation of ringgit against certain foreign currencies.
Net profit for the quarter rose slightly to RM77.6mil from the RM77.17mil posted in 1Q23.
“The higher revenue accompanied by strong profit are testament that our business is growing in the right direction.
“We continuously strategise methods to grow our active member base and launch new products to meet ever-changing consumer preferences,” Lim noted in a statement yesterday.
He added DXN has completed construction of an additional cultivation facility in China as well as two manufacturing facilities in India and China.
DXN currently has 21 vertically integrated production facilities, comprising two research facilities, seven cultivation facilities and 12 manufacturing facilities.
“This should pave the way for us to support the increasing sales of our existing major markets and penetrate further into new markets,” he said.
Lim said the group will remain committed to its dividend policy of paying out 30% to 50% of its earnings.
DXN declared a first interim dividend of 0.80 sen per share, amounting to a payout of RM39.9mil, which shall be paid on Aug 30, 2023.
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