KUALA LUMPUR (April 29): DXN Holdings Bhd’s (KL:DXN) net profit fell 25.3% in its fourth quarter as higher production costs and foreign exchange losses squeezed profit margins despite a slightly increase in sales.

Net profit for the quarter ended Feb 28, 2026 (4QFY2026) declined to RM62.59 million from RM83.75 million a year ago. Earnings per share dropped to 1.26 sen from 1.68 sen, according to the wellness products distributor's bourse filing on Wednesday.

Earnings dropped as production costs and marketing expenses increased, and due to forex losses arising from the strengthening of the ringgit against other curencies, the group said.

Quarterly revenue rose 3.5% to RM474.9 million from RM459.9 million in 4QFY2025, driven by stronger health and wellness consumer products sales in Latin America and India, partially offset by a weaker performance in Morocco.

"The group continues to strengthen its operational resilience through greater self-sufficiency, prioritising the enhancement of its vertically integrated supply chain to reduce reliance on third-party sourcing and support long-term scalability," DXN said in a statement.

The group declared a third interim dividend of 0.7 sen per share, down from one sen per share paid last year, to be paid on May 29.

For the full financial year, DXN's net profit dropped 17.24% to RM271.52 million from 328.07 million in FY2025, while revenue was flat at RM1.9 billion. Excluding forex translation effects, the revenue was up 12.1%, the group said.

DXN is involved in the sale of health-oriented consumer products, including fortified food and beverages, dietary supplements, and personal care and cosmetic products. Latin America and Asia remain its core markets.

On April 13, DXN entered into a 60-year industrial land lease for a 26.6-acre parcel in Bukit Kayu Hitam, Kedah. Valued at RM27.8 million, the site is intended to expand the group's production capacity.

With improvements in manufacturing capacity and its upstream supply chain, the group expects to expand its growth across Latin America, Europe, and Africa — bolstered by newer markets such as Argentina and Brazil. Central to this effort, the group said, is the continued development of coffee plantations in Brazil, Bolivia, and Malaysia.

DXN Holdings’s share price closed unchanged at 46.5 sen, valuing the group at RM2.32 billion.