CYBERJAYA: DXN Holdings Bhd, a leading global manufacturer of nutraceutical products, recorded a net profit of RM70.3 million for the second quarter (Q2) ended August 31, 2025 (FY26), up 6.5% year-on-year (YoY) from RM66.0 million in Q2 FY25.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 8.4% YoY to RM136.0 million compared to RM125.4 million posted in Q2 FY25, lifting the EBITDA margin to 28.3% from 25.7% in Q2 FY25.
Quarterly revenue stood at RM481.2 million in Q2 FY26, down from RM488.4 million in Q2 FY25, reflecting temporary foreign exchange translation effects and higher member stock levels in Morocco.
Excluding these factors, sales would have been higher in key markets as revenue in local currencies remained positive with Peru, Bolivia, Mexico and India posting growth rates ranging from 2.0% to 38.0%.
Reaffirming its commitment to shareholder value, the board declared a second interim dividend of 0.8 sen per share, bringing total dividends for 1H FY26 to 1.7 sen per share, with a total payout of RM84.5 million, representing a payout ratio of 58.6%.
Executive chairman and founder Datuk Lim Siow Jin said the company’s strong business fundamentals and healthy global demand continue to support steady growth despite ongoing macroeconomic challenges.
“We remain proactive in managing foreign exchange volatility, inflationary pressures, and geopolitical uncertainties as we pursue our long-term expansion strategy.
“We are accelerating the diversification of our product portfolio with a focus on functional wellness and expanding our global footprint. Key developments include new facilities in Peru, Bolivia, Brazil, and Kelantan, Malaysia.
“In Brazil, we are establishing a vertically integrated ecosystem, from coffee plantation and processing in Ibia to distribution via our São Paulo hub. This expansion underscores our strategy to build sustainable, regionally integrated operations supported by innovation and scalability,” he said.
For 1H FY26 ended February 28, 2026, DXN posted revenue of RM960.3 million compared to RM963.5 million posted in 1H FY25, reflecting currency translation headwinds offset by solid sales growth across Latin America, India, Turkey, and Mongolia.
Revenue in local currency terms remains strong, with growth ranging from 2.0% to 44.0% across Peru, Bolivia, Mexico, India, Turkey, and Mongolia.
Additionally, EBITDA was RM275.5 million in 1H FY26, compared to RM277.3 million in 1H FY25, while net profit was RM144.2 million, down from RM151.5 million in 1H FY25.
The group remains financially strong, with cash and cash equivalents of RM617.5 million as at August 31, 2025, comfortably exceeding total borrowings of RM178.1 million.
Net operating cash flow for the quarter stood at RM121.5 million, reflecting prudent working capital management and healthy business fundamentals.
Last month, DXN Holdings said that Latin America has become its top revenue-generating region for the financial year ended Feb 28, 2025 (FY25), contributing close to 60% of total sales.
Peru continued to lead performance in the region, while Argentina is poised to break into DXN Holdings’ global top 10 markets, driven by rapid member growth and higher average revenue per member.
The company said the strong showing underscores the scalability of its business model across different markets and enhances its US dollar-linked cash flow base.
Lim said Latin America’s rise, alongside Asia and the Middle East, reflects the strength and reach of DXN Holdings’ global expansion strategy.
He added that transparency, sound governance and prudent capital management remain the company’s key priorities, supporting consistent dividends and long-term value creation.
“As Latin America gains momentum with Asia and the Middle East, our earnings base has become more diversified, our dividend track record remains resilient, and our brand continues to build global recognition,” Lim said.
“With a proactive board and ongoing investor engagement, we maintain disciplined capital allocation focused on sustainable growth.”
