KUALA LUMPUR (Oct 24): DXN Holdings Bhd (KL:DXN) reported a 13.2% drop in net profit for the second quarter ended Aug 31, 2024 (2QFY2025) to RM65.97 million, from RM76.01 million a year ago, hurt by foreign exchange losses, as well as higher employee benefit costs and shipping costs.
For the quarter under review, the health and wellness direct selling company, which was listed in May 2023, posted a record high in quarterly revenue of RM488.43 million. This marked a 6.6% increase, compared with RM458.31 million in revenue reported last year.
According to a bourse filing, the revenue growth was driven by sales increases in Peru and Bolivia, as direct sales members pulled forward purchases ahead of a scheduled price hike.
The company declared a dividend per share of 0.8 sen for 2QFY2025, lower than the 0.9 sen announced a year ago. The dividend is payable on Nov 29.
For the first half ended Aug 31, 2024 (1HFY2025), the group’s net profit fell 1.4% to RM151.54 million from RM153.62 million a year earlier, as revenue grew 9.2% to RM963.49 million from RM882.29 million.
In terms of prospects, the company said it will be launching innovative products and optimising production efficiency in the face of global uncertainties.
It also said it is well positioned for continued success in FY2025, leveraging on its strong performance in the current financial year and its strategic expansion plans.
Shares in DXN fell half a sen to 59 sen on Thursday, giving the company a market capitalisation of RM2.94 billion. The stock has slipped 7.1% year-to-date.