– Strong Growth: Q3FY2025 revenue rose 8.0% YoY to RM486.1 million, with record-breaking PBT grew 19.3% to RM142.9 million.

– Reliable Dividends: Declared a 1 sen interim dividend, being the third interim dividend for the financial year.

– Positive Outlook: 9-month revenue hit RM1.45 billion, supported by global demand for health and wellness products.

DXN Holdings Berhad (MYKL: 5318, DXN), a global leader in the health and wellness sector, has demonstrated resilience and consistent performance in its latest quarterly report for the third quarter ending 30 November 2024.

Despite facing macroeconomic challenges, DXN’s strategic focus on market expansion and operational efficiency continues to drive growth. Below is an in-depth analysis of its financial performance and outlook.

DXN delivered a revenue growth of 8.0% YoY, increasing from RM450.3 million in Q3FY2024 to RM486.1 million in Q3FY2025. This was largely attributed to robust sales growth in Latin America and the Middle East, two of the company’s key markets. Profit before tax (PBT) rose 19.3% YoY to RM142.9 million, reflecting improvements in operational efficiency and a favorable product mix. Meanwhile, profit after tax attributable to shareholders (PATAMI) climbed by 18.4% YoY to RM92.8 million, underlining DXN’s ability to generate consistent earnings growth amidst market challenges.

On a sequential basis, revenue declined slightly by 0.5% QoQ, from RM488.4 million in Q2FY2025 to RM486.1 million in Q3FY2025. The decrease was largely due to forex fluctuations and short-term disruptions in some markets. Despite the revenue dip, DXN’s PBT surged by 28.2% QoQ, rising from RM111.5 million to RM142.9 million, driven by effective cost management and optimisation of production processes. The PBT margin improved significantly from 22.8% in Q2FY2025 to 29.4% in Q3FY2025, showcasing the company’s operational efficiency.

For the nine months ending November 2024, DXN’s cumulative revenue grew 8.8% YoY to RM1.45 billion, compared to RM1.33 billion in the same period last year. Cumulative PBT increased by 7.9% YoY to RM390.7 million, highlighting the company’s consistent ability to manage costs and improve profitability. PATAMI for the period stood at RM244.3 million, further underscoring DXN’s robust performance over the year.

DXN continues to prioritise shareholder returns through consistent dividend payments. The company has already declared two interims earlier in FY2025. Most recently, DXN announced a third interim dividend of 1 sen per share, reflecting its strong cash flow and commitment to delivering value to its shareholders.

DXN remains well-positioned for growth, supported by the rising global demand for health and wellness products. The company’s strategic focus on market diversification and operational excellence has yielded positive results, particularly in key regions like Latin America and the Middle East. DXN’s consistent expansion of its product portfolio and optimisation of production efficiencies are expected to further strengthen its market position.

Despite minor headwinds such as forex volatility, DXN’s proactive measures to control costs and drive margin improvements provide a strong foundation for future growth. The company’s ability to deliver consistent earnings growth and its strategic focus on emerging markets position it as a key player in the health and wellness sector. Looking forward, DXN is poised to continue its upward trajectory, offering strong value to both customers and shareholders.

DXN’s performance for Q3FY2025 reaffirms its solid fundamentals and resilience in a competitive landscape. With robust YoY and YTD growth, consistent dividends, and a clear strategy for future expansion, DXN remains a compelling choice for investors seeking exposure to the growing health and wellness industry. The company’s focus on operational efficiency and market diversification ensures it is well-equipped to navigate challenges and capitalise on new opportunities. We had re-rated the company to ‘BUY’ following the strong results and rewarding dividend yield of 7.13%.