KUALA LUMPUR (Jan 27): DXN Holdings Bhd (KL:DXN), which sells health and wellness products, posted a 18.4% increase in net profit for the third quarter on higher revenue from the Latin American and Middle Eastern markets.
Net profit for the third quarter ended Nov 30, 2024 (3QFY2025) rose to RM92.78 million from RM78.36 million in 3QFY2024, on the back of an 8% jump in revenue to RM486.09 million versus RM450.29 million a year earlier, according to the group in a filing with the local bourse.
DXN declared an interim dividend of one sen per share for the quarter, payable on March 7.
For the nine months ended Nov 30, 2024 (9MFY2025), net profit was up 5.3% to RM244.31 million, compared with RM231.98 million for the same period a year earlier, as revenue rose 8.8% to RM1.45 billion from RM1.33 billion.
Looking to the final quarter of the financial year, DXN said the group is well positioned for continued success in FY2025, citing its strategic focus on expansion in newer markets, sustaining growth momentum, product launches and optimising product efficiency.
Back in November last year, DXN announced plans to charter a corporate jet from its major shareholder LSJ Global Sdn Bhd for up to US$6.6 million (RM29.06 million) annually to expand its global business.
Inputting this additional operational cost, Maybank Investment Bank had trimmed its earnings estimate for DXN for FY2025 by 3% to earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM586 million and core net profit of RM318 million.
LSJ Global, which holds 48.16% of DXN, is controlled by DXN executive chairman and founder Datuk Lim Siow Jin. Lim’s wife Datin Leong Bee Ling owns a 20.11% stake in DXN, making the deal a related party transaction.
Just a week after the announcement to charter a corporate jet, one of DXN’s substantial shareholders, Gano Global Supplements Pte Ltd, trimmed its stake in the company to 8.79%, after disposing of a 4.5% stake in a direct business deal.
Shares in DXN ended half a sen or 0.98% lower at 50.5 sen on Monday, valuing the group at RM2.52 billion. Over the last one year, its share price has declined 23.5%.