KUALA LUMPUR: DXN Holdings Bhd
has earmarked over RM125mil for capital expenditure (capex) in its financial year ending Feb 28, 2025 (FY25) to further expand its manufacturing capacity, according to executive chairman and founder Datuk Lim Siow Jin.
“In FY24, we invested RM119.2mil million in 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,” Lim said in a statement.
He said the newly established manufacturing facilities in Nepal and Bangladesh are progressing well, with commercial production expected to commence by the end of 2024.
“This year, we intend to allocate more than RM125mil in capex to further expand our manufacturing capacity. This expansion aimed to accommodate the anticipated demand from new markets like Zambia and Ghana. It is part of our initiative to support the growing demand for our products from our global members,” Lim said.
Moving forward, DXN will continue to prioritise new market expansion, the launch of new innovative products, optimisation of production efficiency, and business resilience.
In the first quarter ended May 31, DXN’s net profit rose 10.2% to RM85.6mil compared with RM77.6mil achieved last year.
Revenue rose to RM475.05mil from RM423.9mil a year prior while earnings per share climbed to 1.72 sen against 1.60 sen previously.
DXN maintains a robust financial position, with cash and cash equivalents of RM609.2mil exceeding total borrowings of RM140.1mil as of May 31.
Additionally, a healthy net operating cash flow of RM137.8mil was generated in the quarter under review.
DXN has declared a first interim dividend of 0.9 sen per ordinary share for 1QFY25, totalling RM44.8mil. This represents a 52.3% dividend payout ratio based on DXN's 1QFY25 net profit.
