KUALA LUMPUR (July 29): DXN Holdings Bhd (KL:DXN), primarily engaged in the global direct selling of health-oriented and wellness consumer products, reported a 13.6% drop in its first quarter (1Q) net profit, which it blamed on foreign exchange losses due to the strengthening of the Malaysian ringgit.

Its net profit for the first quarter ended May 31, 2025 (1QFY2026) fell to RM73.91 million from RM85.56 million in 1QFY2025, its Tuesday bourse filing showed. The profit decline came despite a marginal increase in its revenue to RM479.1 million from RM475.1 million.

The group's other expenses for the quarter also rose to RM227.12 million, up from RM207.19 million a year earlier, though the specific nature of these expenses was not disclosed.

DXN declared a dividend per share of 0.9 sen, consistent with the amount paid a year earlier.

The company acknowledged that macroeconomic headwinds, including foreign exchange volatility, regional instability, and potential supply chain disruptions, remain key concerns.

Nevertheless, DXN said it is actively monitoring global developments and implementing forward-looking risk management tools to identify, mitigate, and respond to emerging market risks across affected jurisdictions.

To support long-term growth, DXN plans to continue diversifying its product portfolio, with a particular focus on functional wellness solutions aimed at enhancing immunity and overall health.

The group is also expanding its global footprint with new facilities under development in Peru and Morocco, alongside its domestic expansion in Kelantan. These initiatives are expected to improve market access and enhance logistics efficiency.

As of Tuesday's close, DXN shares remained unchanged at 50.5 sen, giving the company a market capitalization of RM2.52 billion.