DXN Holdings net profit for FY24 rises to RM310.99mil


DXN Holdings Bhd executive chairman and founder Datuk Lim Siow Jin

KUALA LUMPUR: DXN Holdings Bhd’s (DXN) net profit for the financial year ended Feb 29, 2024 (FY2024) rose to RM310.99 million from RM275.40 million in FY2023.

Revenue increased 12.6 per cent to RM1.80 billion from RM1.60 billion previously, primarily attributable to organic growth in Latin America and India.

In a filing with Bursa Malaysia today, DXN said regular members' activities, marketing events and the launch of new products in Latin America provided the momentum of organic growth in the region.

The group noted that its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 8.2 per cent from RM496.4 million in FY2023 to RM537.1 million in FY2024.

"EBITDA margin was relatively consistent with the preceding financial year. A slight decrease in margin was due to inflationary impact as well as the increase of employee benefit in the current financial year, which was partially offset by the decrease in transportation expenses,” it said.

As for the fourth quarter (4Q FY2024), DXN posted a higher net profit of RM79.02 million from RM55.17 million in 4Q FY2023, while revenue rose to RM470.64 million from RM405.0 million previously.

For the quarter under review, it noted that the increase in revenue was mainly from Latin America and India; with the organic growth in Latin America being the outcome of independent conventions and events organised by members and the launch of new products to stimulate the local market development.

The group has declared a fourth interim dividend of one sen per ordinary share totalling RM49.73 million for FY2024, which will be paid on May 30, 2024 to shareholders whose names appear in the record of depositors of the company on May 13, 2024.

Moving forward, the group plans to expand its presence into Brazil in the next financial year as it presents a significant opportunity, given the country’s large population of 217 million and its proximity to the group’s existing Latin American presence.

"Efforts will remain focused on sustaining market momentum, launching new products through research and development initiatives, and optimising production efficiency.

"Notwithstanding ongoing global geopolitical tensions, uncertainties surrounding key monetary policies, and inflationary pressures, the group does not anticipate any material impact on its profitability,” it added. - Bernama

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