CYBERJAYA: Global health-oriented and wellness direct-selling company DXN Holdings Bhd, which will be listed on Bursa Malaysia’s Main Market today, is optimistic that its product sales and members will increase when it enters the Brazilian market.
DXN chairman Datuk Lim Siow Jin said Brazil has the potential to drive its product sales and membership this year, due to its big population size and the company’s performance in Brazil’s neighbouring country, Peru.
“Peru has a population of 36 million, our sales can be US$10 million (RM45 million) per month, per year is over US$100 million. Now Brazil, the population is (over) 200 million, if we can have the same kind of performance as in Peru, the sales will double,” he told reporters at a press conference today.
Lim said the Latin American market is important to the company, with Peru contributing 25% of its sales. Currently, DXN’s active member base stands at 3.6 million across more than 180 countries.
“The coming year will be a good year, we are going into a big market like Brazil. Even though we haven’t entered the market, but we already have ... 36,000 members in Argentina,” he added.
On the company’s plans for the next five years, Lim said the group aims to undertake a three-pronged approach.
“Firstly, we aim to penetrate deeper into existing markets, this means growing our global network of members in countries where we are currently present.
“Secondly, we aim to cover a wider range of markets; currently we have 79 sales branches across 50 markets. We intend to cover all continents in the world via growing our member base or partnering with external distribution agencies which have the advantage of local market know-how and better networks with local stakeholders.
“Lastly, to continuously enhance our offerings with new health and wellness products. Currently, we have 452 SKUs (stock keeping units) in our product portfolio with 327 manufactured in-house.
“We are committed towards research and development as well as working towards expanding product offering to ensure we are able to cater to changing consumer needs and enhancing member engagement,” he said, adding that it will continue with the expansion of its vertically integrated global supply chain by having more cultivation and manufacturing facilities.
Meanwhile, chief marketing officer Teoh Hang Ching said DXN has allocated RM120 million for capital expenditure this year.
He added that for the financial year ended Feb 28, 2023 (FY’23), the group recorded higher revenue of RM1.6 billion, which represented a 28.8% increase compared with RM1.2 billion in the previous financial year.
“The DXN group’s profit before tax and profit after tax (for FY’23) were RM455.5 million and RM289.3 million respectively, which translated into 25.5% and 17.9% increases year-on-year,” he stated.
The group was listed on the main board in September 2003 and was delisted in December 2011.
Teoh said the relisting is for profiling purposes. “It’s to enhance the public relations of the company. Not so much for raising funds since we are already cash rich. Becoming a listed company will help our growth plans and give assurance to stakeholders in terms of our business model and foundation,” he added.
