PETALING JAYA: DXN Holdings Bhd
’s near-term outlook remains subdued, with analysts expecting earnings to stay under pressure unless major foreign currencies strengthen against the ringgit.
Maybank Investment Bank Research (Maybank IB) said meaningful earnings improvement may only materialise if the US dollar and euro begin to strengthen against the ringgit, given the group’s large sales mix from outside Malaysia, noting that over 90% of revenue is denominated in foreign currencies .
“The group strategy to build up its upstream capabilities for coffee and ongoing production capacity increases to support penetration into new markets are on track,” it added.
While sales momentum in key markets such as Peru, Bolivia and India is still positive, this is unlikely to fully offset currency translation losses in this financial year.
DXN’s third-quarter financial year 2026 net profit fell 30% year-on-year to RM64.8mil, bringing it’s first nine months of financial year 2026 earnings to RM208.9mil, or about 70% of Maybank IB’s full-year estimate .
Revenue of RM1.42bil for the first nine months was broadly in line with expectations, but profitability lagged due to higher-than-anticipated operating expenses.
Currency movements were the main drag on reported performance.
Revenue declined 5% year-on-year in the quarter, largely due to the weaker US dollar and other currencies against the ringgit.
Excluding foreign-exchange effects, sales in several local markets actually grew strongly, ranging from mid-single-digit growth in Peru to almost 40% in Bolivia.
