Cyberjaya, 29 October 2025 – DXN Holdings Bhd (“DXN” or the “Company”) [德信控股], one of Asia’s leading nutraceutical and direct-selling groups, delivered resilient financial results for the second quarter ended 31 August 2025 (“2QFY26”), with solid profitability and improving margins despite currency headwinds and global macro challenges.
DXN recorded a net profit of RM70.3 million, up 6.5% year-on-year from RM66.0 million a year ago, supported by healthy contributions from its international operations and disciplined cost management. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 8.4% YoY to RM136.0 million, lifting the EBITDA margin to 28.3% from 25.7% in 2QFY25, a testament to stronger operational efficiency and product mix optimisation.
Quarterly revenue was RM481.2 million, slightly lower than RM488.4 million in 2QFY25, primarily due to temporary foreign-exchange translation effects and higher member stock levels in Morocco. Excluding these one-off factors, DXN said its revenue in local currencies remained positive, with Peru, Bolivia, Mexico, and India posting growth rates ranging from 2% to 38%.
Strong Dividend Commitment
Reinforcing its commitment to shareholder value, DXN’s Board declared a second interim dividend of 0.8 sen per share, bringing total dividends for the first half of FY2026 to 1.7 sen per share (amounting to RM84.5 million), representing a payout ratio of 58.6%.
Executive Chairman and Founder Datuk Lim Siow Jin (拿督林孝仁) said the Group’s steady performance reflected its robust fundamentals and diversified geographic exposure.
“Our strong business fundamentals and healthy global demand continue to support steady growth despite ongoing macroeconomic challenges,” Lim said. “We remain proactive in managing foreign-exchange volatility, inflationary pressures, and geopolitical uncertainties as we pursue our long-term expansion strategy.”
Global Expansion and Diversification
Lim highlighted that DXN is accelerating the diversification of its product portfolio with a stronger focus on functional wellness and regional market scalability.
Among key developments are new facilities in Peru, Bolivia, Brazil, and Kelantan (Malaysia). In Brazil, the Company is building a vertically integrated ecosystem, spanning coffee plantation and processing in Ibia, Minas Gerais, to distribution through its São Paulo hub — a move that marks DXN’s deepening foothold in the Latin American wellness and beverage market.
“This expansion underscores our strategy to build sustainable, regionally integrated operations supported by innovation and scalability,” Lim added.
First-Half Results Reinforce Regional Momentum
For 1HFY26, DXN reported revenue of RM960.3 million (1HFY25: RM963.5 million), reflecting mild currency translation headwinds offset by resilient local-currency sales growth. Latin America, India, Turkey, and Mongolia continued to deliver double-digit expansion in their home currencies, with growth ranging between 2% and 44%.
EBITDA stood at RM275.5 million (1HFY25: RM277.3 million), while net profit came in at RM144.2 million (1HFY25: RM151.5 million). The Company attributed the modest variance to the impact of exchange rates and timing differences in distribution cycles.
Solid Balance Sheet and Cash Flow
DXN remains in a strong financial position, with cash and cash equivalents of RM617.5 million as at 31 August 2025, comfortably exceeding total borrowings of RM178.1 million. Net operating cash flow during the quarter rose to RM121.5 million, underpinned by efficient working-capital management and consistent demand across markets.
With its diversified revenue base, prudent cost controls, and expanding presence in high-growth emerging economies, DXN Holdings continues to demonstrate resilience and agility amid global economic uncertainty.
Outlook
With its growing Latin American network and strengthened operational foundations, DXN Holdings is well-positioned to capture rising global demand for functional foods and wellness-oriented nutrition. The Company’s strategic emphasis on localisation, sustainability, and vertically integrated supply chains continues to anchor its long-term value creation for shareholders.
