CYBERJAYA: DXN Holdings Bhd, a Bursa Malaysia-listed global wellness manufacturer, saw its revenue decrease by 7.5% to RM443.03 million for Q1 ended May 31, 2026 (FY27).
According to a Bursa Malaysia filing, the decline was primarily attributed to lower exports to the Middle East, where the group distributes its products exclusively through an external distribution agency.
The lower exports during the quarter were mainly due to the timing of stock replenishment by the agency, while
underlying demand in the Middle East market remained resilient.
In addition, softer market conditions in Africa also contributed to the lower revenue.
Net profit for the quarter stood at RM58.53 million, down by 20.8% from RM73.91 million.
The lower margin was primarily attributed to the disproportionate impact of lower revenue on profitability, as the
group’s fixed operating cost base was largely unchanged, while the Group also continued to incur expenses in upstream and downstream business initiatives.
Group CEO Prajith Pavithran said the group’s Q1 results show real momentum building and reflect the cost discipline it built into the business, with margins widening even as revenue moderated through the quarter.
“On an annualised basis, this translates into a return on equity (ROE) of approximately 17%, indicating that shareholders’ capital is being put to efficient, productive use, even as we continue to fund significant growth investment from our own balance sheet.”
“As we enter the group’s next phase of growth, we are strengthening coordination, accountability and execution across the organisation to ensure that our strategic initiatives are supported by disciplined capital prioritisation, clear ownership, and measurable outcomes,” he said.
Prajith said against this foundation, DXN Holdings is deploying up to RM500 million in planned capital expenditure for FY27 to strengthen its vertically integrated global platform.
This includes expanding manufacturing capacity across Malaysia, Brazil, Morocco, Peru and Bolivia; developing plantation initiatives in Bolivia, Brazil and Malaysia to enhance raw-material security and cost resilience, and accelerating market development across new and underpenetrated markets, particularly in Africa and Europe.
“Collectively, these initiatives are designed to create a more secure, efficient and scalable operating platform, providing the capacity and capabilities required to support DXN’s next phase of global growth.
“We remain confident in DXN’s medium- and long-term outlook, supported by our resilient business model, expanding global footprint and disciplined approach to capital deployment.
“Over the next three years, we are targeting consistent revenue growth, a gross profit margin of at least 80%, a double-digit return on equity, a dividend payout ratio of at least 50% and the maintenance of a net cash position.
“Over the longer term, automation, vertical integration, and disciplined expansion into new markets will position DXN to capture opportunities within the growing wellness economy.
“This confidence is also reflected in the continued momentum across several of our markets. In constant currency terms, Mongolia rose by 5.0% QoQ, while Peru has also delivered positive growth during the quarter,” he said.
The board declared a first interim dividend of 0.60 sen per ordinary share for the financial year ending Feb 28 2027, amounting to approximately RM29.8 million, payable on Aug 28, 2026.
This follows total dividends of 3.20 sen per share declared for FY26, maintaining the group’s uninterrupted quarterly dividend track record.
Based on the last four declared interim dividends and the group’s closing share price of RM0.45 as of May 29, 2026, this represents a trailing twelve-month dividend yield of approximately 6.4%.
The group ended the quarter in a net cash position of RM421.2 million, with total liabilities of RM752.5 million representing less than a third of total assets of RM2.2 billion.
The first interim dividend represents a payout of approximately 51% of the quarter’s basic earnings per share, consistent with the Board’s stated policy of distributing at least 50% of net profit to shareholders.
