KUALA LUMPUR (Oct 29): Multi-level marketing company DXN Holdings Bhd’s (KL:DXN) net profit grew 6.5% to RM70.26 million in the second financial quarter despite lower revenue, thanks to lower expenses.

This compared to a net profit of RM65.97 million for the previous year’s corresponding quarter ended Aug 31, 2024 (2QFY2025).

Quarterly revenue, however, slipped 1.5% to RM481.2 million from RM488.43 million, an exchange filing showed on Wednesday.

The company’s profit growth was driven by a 7% drop in other expenses to RM221.46 million, and a 6.4% fall in raw materials used and trading inventories to RM66.19 million.

The decline in overall sales was due to a stronger ringgit, DXN stated in the filing.

Excluding currency translation, DXN said revenue growth remained positive in Peru, Bolivia, Mexico, India and the Middle East. Revenue from Morocco, however, declined due to softer demand.

DXN declared a second interim dividend of 0.8 sen, to be paid on Nov 28.

For the six months ended Aug 31, 2025 (6MFY2026), net profit was down 4.9% to RM144.17 million from the same period a year earlier, as revenue edged down 0.3% to RM960.26 million.

Potential headwinds may lie ahead in certain operational jurisdictions, DXN noted, due to geopolitical tensions, foreign exchange fluctuations, inflationary pressures on energy prices and heightened regional instability.

“However, the group remains vigilant and is actively monitoring these developments, supported by forward-looking risk management tools designed to identify, mitigate and respond proactively to market risks,” it said.

The group is expanding its global footprint with new facilities in Peru, Bolivia and Morocco. “In addition, the group is also expanding into Kelantan,” it added.

Shares in DXN dropped 0.5 sen to close at 53.5 sen on Wednesday, valuing the group at RM2.64 billion.