Cyberjaya, 27 July 2026 – DXN Holdings Bhd. (“DXN” or the “Company”) [德信控股], a Bursa Malaysia-listed global wellness manufacturer, has announced its unaudited financial results for the first quarter ended 31 May 2026 (“Q1FY27”) for the Company and its subsidiaries (“DXN Group” or the “Group”).

The Group recorded earnings before interest, tax, depreciation and amortisation (“EBITDA”) rose 3.7% quarter-on-quarter (“QoQ”) to RM118.6 million from RM114.4 million, lifting EBITDA margin to 26.8% from 24.1%. Profit before tax (“PBT”) rose 5.0% QoQ to RM100.9 million from RM96.1 million, with PBT margin rising to 22.8% from 20.2%. These improvements were mainly due to lower promotional expenses following seasonal marketing activities and reduced foreign exchange losses.

While revenue stood at RM443.0 million for the current quarter under review, moderating from RM474.9 million in the preceding quarter (“Q4FY26”), mainly due to softer sales as customers increased inventory following stock replenishment ahead of price increases in several major markets.

Group Chief Executive Officer, Mr. Prajith Pavithran said, “Our first quarter results show real momentum building and reflect the cost discipline we've built into our business, with margins widening even as revenue moderated through the quarter. On an annualised basis, this translates into a return on equity (“ROE”) of approximately 17%, indicating that shareholders' capital is being put to efficient, productive use, even as we continue to fund significant growth investment from our own balance sheet.”

“As we enter the Group's next phase of growth, we are strengthening coordination, accountability and execution across the organisation to ensure that our strategic initiatives are supported by disciplined capital prioritisation, clear ownership, and measurable outcomes.”

“Against this foundation, we are deploying up to RM500 million in planned capital expenditure for FY27 to strengthen our vertically integrated global platform. This includes expanding manufacturing capacity across Malaysia, Brazil, Morocco, Peru and Bolivia; developing plantation initiatives in Bolivia, Brazil and Malaysia to enhance raw-material security and cost resilience; and accelerating market development across new and underpenetrated markets, particularly in Africa and Europe. Collectively, these initiatives are designed to create a more secure, efficient and scalable operating platform, providing the capacity and capabilities required to support DXN's next phase of global growth.”

“We remain confident in DXN's medium- and long-term outlook, supported by our resilient business model, expanding global footprint and disciplined approach to capital deployment. Over the next three years, we are targeting consistent revenue growth, a gross profit margin of at least 80%, a double-digit return on equity, a dividend payout ratio of at least 50% and the maintenance of a net cash position. Over the longer term, automation, vertical integration, and disciplined expansion into new markets will position DXN to capture opportunities within the growing wellness economy.”

“This confidence is also reflected in the continued momentum across several of our markets. In constant currency terms, Mongolia rose by 5.0% QoQ, while Peru has also delivered positive growth during the quarter,” he concluded.

Dividend
The Board declared a first interim dividend of 0.60 sen per ordinary share for the financial year ending 28 February 2027, amounting to approximately RM29.8 million, payable on 28 August 2026. This follows total dividends of 3.20 sen per share declared for FY26, maintaining the Group's uninterrupted quarterly dividend track record.

Based on the last four declared interim dividends (Q2FY26: 0.80 sen; Q3FY26: 0.80 sen; Q4FY26: 0.70 sen; and Q1FY27: 0.60 sen) and the Company's closing share price of RM0.45 as at 29 May 2026, this represents a trailing twelve-month dividend yield of approximately 6.4%.

Capital allocation and balance sheet discipline
The Group ended the quarter in a net cash position of RM421.2 million, with total liabilities of RM752.5 million representing less than a third of total assets of RM2.2 billion. The first interim dividend represents a payout of approximately 51% of the quarter's basic earnings per share, consistent with the Board's stated policy of distributing at least 50% of net profit to shareholders.

On a year-on-year basis, PATAMI was RM58.5 million against RM73.9 million in the corresponding quarter, mainly reflecting lower Middle East export volumes tied to distributor stock-replenishment timing rather than a change in underlying demand. On a QoQ basis, PATAMI moderated to RM58.5 million from RM62.6 million, as the improvement in PBT was offset by a higher effective tax compared to Q4FY26 arising from an overprovision of tax in prior period in Q4FY26.