CYBERJAYA : DXN Holdings Bhd, a global health-oriented and wellness direct selling company, under its dividend policy, intends to payout at least 50% of DXN's audited consolidated profit after taxation and minority interest (Patami)) commencing immediately.
Previous payout ratio was 30% to 50% of Patami. In its policy, DXN states such that dividends will be distributed on a quarterly basis. As of today, the total dividend payout and declared for FYE2024 is RM104.7 million which is equivalent to a payout ratio of 68.2% of Patami.
At the same time, DXN announced its unaudited results for the second quarter of the financial year ending Feb 29, 2024 (Q2FYE2024) yesterday.
For the quarter under review, DXN recorded revenue of RM458.3 million, an increase of 15.7% compared to RM396.2 million in the preceding year’s corresponding quarter, driven mainly by continuous sales growth in Latin America, India and the Middle East. Normalised earnings before interest, taxes, depreciation and amortisation (Ebitda) for Q2FYE2024 was RM139.2 million, which translated to a 3.3% and 3.5% increase compared to normalised Ebitda and reported Ebitda respectively in the preceding year corresponding period. Reported Ebitda in Q2FYE2024 was RM133.2 million.
Normalised profit before tax (PBT) was RM124.2 million, a year-on-year increase of 4.9% and 5.1% compared to the normalised PBT and reported PBT in Q2FYE2023.
Normalised Patami for Q2FYE2024 was RM84.6 million, which translated to a year-on-year increase of 3.1% and 11.6% compared to normalised Patami of RM82.0 million and reported Patami of RM75.8 million in Q2FYE2023. Reported PBT and Patami for Q2FYE2024 was RM118.1 million and RM76.0 million respectively as a result of one-off items, including listing expenses, reversal of member bonuses, social contribution to Morocco, local donation expenses to the Malaysia Madani Programme in support of the government’s initiatives to provide basic needs to the underprivileged communities and donations to the R&D department of a local education institution as DXN’s contribution to nation building.
For the first half of the financial year ending Feb 29, 2024 (1HFYE2024), DXN’s revenue increased to RM882.3 million compared to RM756.6 million in the preceding year’s corresponding period.
The increase in revenue of 16.6% was primarily attributable to positive market sentiment after Covid-19 pandemic, active members’ activities, product promotion as well as expansion of product range in Latin America, India and the Middle East. In addition, DXN’s normalised PBT and Patami for 1HFYE2024 was RM246.5 million and RM163.4 million respectively, a year-on-year increase of 13.8% and 10.9% in comparison to the normalised PBT and Patami of 1HFYE2023. Reported PBT was RM242.2 million whereas Patami clocked in at RM153.6 million, a year-on-year increase of 3.7% and 0.4% respectively. The lower reported Patami compared to normalised Patami was mainly as a result of the one-off items as explained above.
DXN non-independent executive chairman and founder Datuk Lim Siow Jin said, “In light of our commitment towards sustainable growth and delivering greater value to our shareholders, I am pleased to announce that we have made a significant step forward by the adoption of a dividend policy. We have decided to increase our dividend payout ratio from 30% to 50% of our Patami to paying out at least 50% of our Patami. This change reflects our confidence in DXN’s financial strength and the opportunities ahead.
To add on, we are pleased to announce positive results for Q2FYE2024. We have achieved consistent results, which are testament to the dedication and hard work of our members, our strong leadership team, and our commitment to provide high-quality products to our customers. During the first half of the year, DXN’s sales figure remained strong, thanks to the growth strategies implemented to drive recruitment of new members and higher penetration into existing markets.
We look forward to build on the momentum from the first half and achieve even greater success for the remainder of the year. Our dedication to innovation, quality, and the commitment of our members remains as the driving force behind our success. DXN is confident that with the support of its global team, the future looks even more promising.”
DXN’s Board of Directors has declared a second interim dividend of 0.90 sen per ordinary share on 4.99 billion ordinary shares, amounting to RM44.9 million, which shall be paid on Nov 30, 2023.
