KUALA LUMPUR: Direct selling health and wellness group DXN Holdings Bhd expects its revenue and profitability to sustain an upward growth trajectory in the coming quarters, underpinned by capacity expansion across its vertically integrated supply chain and steady demand from its captive global consumer base.
In a Bursa Malaysia filing today, the group expressed a constructive outlook, highlighting that structural shifts in global demand toward functional foods, digestive health, and nutraceuticals in emerging markets align directly with its Ganoderma- and spirulina-focused portfolios.
To secure raw material inputs and safeguard against commodity price swings, DXN is investing RM249 million into upstream operations at its 5,929ha mega plantation in Gua Musang, Kelantan, alongside RM34.2 million for coffee cultivation across 155ha in Brazil.
In midstream processing, the group is executing major capital projects, including manufacturing plants in Bukit Kayu Hitam (RM132 million), Gua Musang (RM80.6 million), Bolivia (RM122.2 million), Peru (RM127.7 million), and Morocco (RM120.7 million). These diversified facilities are designed to increase production capacity, shorten delivery lead times, and enhance operating margins as they are progressively commissioned.
For the second quarter ended Aug 31, 2026 (2QFY27), DXN’s net profit attributable to owners of the company (PATAMI) jumped 29.93% year-on-year (y-o-y) to RM91.29 million from RM70.26 million in 2QFY26. Total net profit rose 28.35% y-o-y to RM94.38 million compared with RM73.53 million.
Quarterly revenue grew 5.32% y-o-y to RM506.81 million from RM481.2 million, driven by active member engagement and robust sales momentum in key Latin American markets, with Peru up 13.7% and Bolivia up 49.3%, as well as India (+10.7%).
The top-line expansion was partly tempered by softer sales in Morocco and lower shipments to the Middle East due to regional geopolitical tensions. Profitability was further boosted by cost savings following the termination of an aircraft charter arrangement in May 2026 and lower foreign exchange losses.
On a quarter-on-quarter (q-o-q) basis, DXN rebounded sharply from the immediately preceding first quarter ending May 31, 2026 (1QFY27). Revenue advanced 14.4% from RM443.03 million, driven by sequential sales surges of 26.8% in Peru and 21.6% in Bolivia, aided by distributor purchases ahead of price adjustments and a partial recovery in Middle Eastern export orders.
PATAMI climbed 55.96% q-o-q from RM58.53 million in 1QFY27, while profit before tax grew 33.70% to RM134.89 million from RM100.89 million, supported by operating leverage and improved EBITDA margins of 29.9%.
For the cumulative six months ended Aug 31, 2026 (1MFY27/6MFY27), PATAMI edged up 3.92% to RM149.82 million despite cumulative revenue easing 1.09% to RM949.84 million.
The board declared a second interim dividend of 1 sen per share (totalling RM49.26 million), payable on Nov 27, 2026.