KUALA LUMPUR: DXN Holdings Bhd's net profit edged up 10 per cent to RM85.56 million in the first quarter ended May 31, 2024 from RM77.6 million in the same period last year.
According to a filing with Bursa Malaysia, the global manufacturer of nutraceutical products recorded a revenue of RM475 million, 12 per cent higher than RM423.98 million in the previous year.
DXN declared a dividend of 0.9 sen per ordinary share, totalling RM44.8 million or 52.3 per cent dividend payout ratio that will be paid on August 12.
DXN said organic expansion in key markets such as Peru, Bolivia, Mexico and India continued to be the primary drivers of its sustained growth.
The growth resulted from a combination of independent initiatives, high impact events organised by leadership groups, innovative product introductions, and effective marketing campaigns.
Executive chairman and founder Datuk Lim Siow Jin said the company is strategically positioned to enter key markets such as Brazil, Argentina and Chile, leveraging its exceptional performance in FY24 that was fuelled by sustained growth in Latin America and India.
"In FY24, we invested RM119.2 million in capital expenditures (capex) to establish new manufacturing facilities in China, India, Dubai, and Mexico.
"These facilities began commercial production in calendar year 2023, significantly enhancing our production capabilities across a diverse range of products including coffee, tea, carbonated juice, and spirulina," he said.
Lim added that the manufacturing facilities that recently established in Nepal and Bangladesh, which will produce a range of bestselling coffee-related products, are progressing well, with commercial production expected to commence by the end of this year.
He said DXN planned to allocate more than RM125 million in capex this year to further expand manufacturing capacity and accommodate the anticipated demand from new markets like Zambia and Ghana.