KUALA LUMPUR (July 28): DXN Holdings Bhd reported a marginal 0.57% increase in its net profit for the first quarter ended May 31, 2023 (1QFY2024) to RM77.60 million, from RM77.17 million a year earlier, on the back of higher revenue.

Revenue rose 17.65% to RM423.98 million from RM360.39 million, mainly supported by the sales growth of fortified food and beverages in Latin America and India, as well as depreciation of the ringgit against certain foreign currencies, the health and wellness direct selling group said in a bourse filing.

DXN declared its first interim dividend of 0.80 sen per share, to be paid on Aug 30.

On a quarter-on-quarter basis, DXN’s net profit jumped 40.67% from RM55.17 million in 4QFY2023, as revenue rose 4.69% from RM405 million, mainly due to the sales of its fortified food and beverages.

DXN's non-independent executive chairman and founder Datuk Lim Siow Jin said the group will continue to grow its active member base and launch new products to meet ever-changing consumer preferences.

“We recently completed the construction of an additional cultivation facility in China and two manufacturing facilities in China and India. Currently, we have 21 vertically integrated production facilities, comprising two research facilities, seven cultivation facilities and 12 manufacturing facilities,” he said in a statement.

This, he said, should pave the way for DXN to support the increasing sales of its existing major markets and penetrate further into new markets.

“We had a good start to our financial year and we are optimistic we would be able to deliver growth and generate sufficient cash through our scalable business model. We are committed to our dividend policy of paying out 30-50% of our profit after taxation and minority interest (Patami)," he added.

DXN shares closed 1.5 sen or 2.05% higher to 74.5 sen on Friday (July 28), giving the group a market capitalisation of RM3.69 billion.