CGS International Research said DXN’s 3Q25 revenue growth missed expectations due to the ringgit strengthening by 5% to 12% against the currencies of key markets in Latin America and the Middle East.
PETALING JAYA: Health and wellness products distributor DXN Holdings Bhd
, which released the financial results for its third quarter ended Nov 30, 2024 (3Q25) last week, is expected to sustain margins despite the ringgit’s strengthening
Normalising shipping rates are expected to support the company’s earnings before interest, taxes, depreciation, and amortisation margins.
CGS International Research, which has retained an “add” call on the stock with a target price of 85 sen, said DXN’s 3Q25 revenue growth missed expectations due to the ringgit strengthening by 5% to 12% against the currencies of key markets in Latin America and the Middle East.
The lower revenue affected net profit, which came in at 66% of the research house’s net profit estimates for the full financial year ending Feb 28, 2025.
“Our understanding is that revenue growth would have been higher if the ringgit exchange rates versus its key invoicing currencies had remained unchanged during the quarter, as sales from DXN’s top 10 countries, making up around 88% of its 3Q25 total gross sales, were 6% higher quarter-on-quarter in local-currency terms,” the research house said.
DXN shares closed at 53 sen yesterday, up 5% from the start of the year.
