CEO Morning Brief

DXN’s 4Q Net Profit Up 43%, Seeks to Expand Market Presence in Brazil

Publish date: Wed, 24 Apr 2024, 09:37 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (April 23): DXN Holdings Bhd posted a 43.23% rise in net profit to RM79.02 million for its fourth quarter ended Feb 29, 2024 (4QFY2024), from RM55.17 million a year ago, on the back of higher revenue.

Earnings per share rose to 1.59 sen from 1.14 sen, according to the health and wellness direct selling company’s bourse filing on Tuesday.

Quarterly revenue grew 16.21% to RM470.64 million from RM405 million in 4QFY2023, primarily attributed to increased revenue contributions from Latin America and India, bolstered by a combination of member-driven conventions and events, the launch of new products, and targeted marketing programmes.

For the full year (FY2024), the group’s net profit increased 12.9% to RM310.99 million from RM275.4 million in FY2023, while revenue expanded 12.6% to RM1.8 billion from RM1.6 billion.

DXN declared a fourth interim dividend of one sen per share, payable on May 30, bringing its total dividend declared for FY2024 to 3.6 sen per share.

Looking ahead, DXN aims to expand its market presence in Brazil in FY2025, while remaining dedicated to sustaining market momentum through ongoing product innovation via research and development initiatives and optimising production efficiency for long-term success.

“Our recent entry into Brazil presents a significant new market opportunity within Latin America. With Brazil’s vast population exceeding 200 million, the potential for growth is immense,” said DXN executive chairman and founder Datuk Lim Siow Jin in a statement.

Lim added that the group is well poised to capitalise on this opportunity by leveraging its established member network and strong brand presence in neighbouring Latin American countries, such as Mexico, Peru, Bolivia and Colombia.

Shares in DXN remained unchanged at 62 sen on Tuesday, valuing the group at RM3.09 billion.

Source: TheEdge - 24 Apr 2024

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