KUALA LUMPUR (July 26): Health and wellness direct selling company DXN Holdings Bhd (KL:DXN) said on Friday its net profit rose 10.26% in the first quarter from a year earlier due to higher revenue recognised from overall operating segments. 

Net profit for the three months ended May 31, 2024 (1QFY2025) was RM85.56 million or earnings per share of 1.72 sen, compared with RM77.60 million or 1.60 sen per share over the same period last year, DXN’s bourse filing showed. 

Revenue for the quarter climbed 12.05% year-on-year to RM475.05 million from RM423.98 million, on the organic expansion in key markets including Peru, Bolivia, Mexico and India that continued to be the primary growth driver. 

“This was underpinned by a combination of independent initiatives, high-impact events organised by leadership groups, innovative product introductions and effective marketing campaigns," DXN said.

DXN declared a first interim dividend of 0.9 sen per share, totalling RM44.8 million, payable on Aug 28.

Moving ahead, DXN executive chairman and founder Datuk Lim Siow Jin said the group intends to allocate more than RM125 million in capital expenditure to further expand its manufacturing capacity.

“This expansion is aimed at accommodating the anticipated demand from new markets like Zambia and Ghana. It is part of our initiative to support the growing demand for our products from our global members,” he said.

The group will also prioritise new market expansion, the launch of new innovative products, optimisation of production efficiency and business resilience. 

During the quarter under review, DXN saw revenue contribution from its health and wellness consumer products segment grow 11.93% to RM467.28 million from RM417.46 million.

Meanwhile, revenue from other non-reportable segments that include operating a cafe, glamping resort, forest plantation, among others, increased 19.28% to RM7.78 million from RM6.52 million. 

Shares in DXN traded up half a sen or 0.79% to 63.5 sen on Friday, valuing the group at RM3.16 billion. The stock has slipped 2.31% year to date.