01/05/2026

FRIDAY | MAY 1, 2026

15

BIZ & FINANCE

DXN earnings soften in face of forex headwinds

MGS stable amid global yield volatility

KUALA LUMPUR: The Malaysian Government Securities (MGS) and Government Investment Issues (GII) yields were broadly stable this week, moving within -5.7 to +1.7 bps range. The 10-year MGS edged lower by 0.7 bps to 3.546%, while the 10-year GII was unchanged at 3.57%, reflecting a still well-anchored local curve despite external volatility. Kenanga Investment Bank Bhd (Kenanga IB) said domestic fundamentals continue to anchor Malaysian rates, underpinned by resilient export diversification and steady macro conditions. However, the firm said the pace of yield compression remains capped by global forces. “Persistent Middle East tensions and elevated risks around the Strait of Hormuz have kept oil prices firm, sustaining upside pressure on global inflation expectations. “Combined with sticky US Treasury (UST) yields near 4.4% and cautious BoJ signalling, this has reinforced a ‘higher-for-longer’ global yield backdrop that limits further downside in local yields,“ Kenanga IB said. On flows and outlook, Kenanga IB said foreign participation was soft, with net government bond outflows of RM1.8 billion last week, alongside continued equity outflows, reflecting cautious positioning amid global uncertainty. Domestically, the upcoming PMI, IPI, and the BNM MPC meeting are expected to provide near term support and help anchor yields. Externally, ECB and BoE decisions, Fed inflation signals and the fragile US-Iran ceasefire remain key risks to yield volatility, it said. Touching on UST, yields rose sharply across the curve, up between 9.7 and 15.5 bps. The 10-year yield climbed 12.7 basis points (bps) to 4.43%, while the two-year yield surged 14.9 bps to 3.947%, reflecting a broad upward repricing of policy expectations and risk premia. Kenanga IB said markets continue to reprice the Fed’s reaction function following its hawkish hold and upgraded inflation assessment. Policymakers have explicitly flagged energy driven price pressures and heightened uncertainty stemming from developments in the Middle East. Kenanga IB said that despite resilient US activity data, including firmer consumer confidence, market pricing remains driven more by supply-side inflation risks than by demand strength. “Stalled progress in US–Iran negotiations and persistently elevated oil prices have reinforced inflation stickiness concerns. “Hawkish undertones from other major central banks, including the BoJ, have further contributed to global yield rigidity, keeping UST yields elevated across the curve,“ Kenanga IB said.

o Stronger ringgit, higher expansion costs and marketing spending weighed on earnings, though revenue stayed resilient at RM1.9b

CYBERJAYA: DXN Holdings Bhd, a leading global manufacturer of nutraceutical products, delivered a resilient set of results in FY26 despite a more challenging operating environment characterised by foreign exchange volatility. For FY26, which ended Feb 28, 2026, revenue stood at RM1.9 billion, broadly in line with the previous year, reflecting the continued strength of its global member network and underlying demand across key markets. The group’s performance was affected by currency translation gains resulting from the ringgit’s strengthening against several of its operating currencies. However, excluding these effects, DXN achieved a healthy underlying normalised revenue growth of 12.1% year-on-year (YoY). From a profitability standpoint, earnings before interest, tax, depreciation and amortisation (EBITDA) stood at RM521.5 million, compared to RM583.2 million in FY25. Net profit came in at RM271.5 million, down from RM328.1 million in FY25, reflecting a moderation in profitability. The moderation in profitability was mainly attributable to foreign exchange losses, higher marketing expenditures to support business expansion, and pre operating expenses associated with the group’s ongoing investments in the upstream and midstream segments. Additionally, the previous financial year included a one-off indirect tax refund, which resulted in a higher profitability base for comparison. For Q4’26, DXN delivered revenue of RM474.9 million, up 3.5% YoY from RM458.9 million in Q4’25. Performance was driven by strong organic growth in Latin America and India, with underlying growth of 6.3% YoY after excluding the impact of the

strengthening ringgit. EBITDA came in at RM114.4 million, while net profit stood at RM62.6 million, compared to RM147.8 million and RM83.7 million, respectively in Q4’25, mainly due to foreign exchange losses and higher promotional and marketing activities undertaken during the quarter. DXN closed FY26 with a strong financial position, supported by a healthy net cash position and low gearing. As of Feb 28, 2026, the group held cash and cash equivalents of RM617.4 million, more than three times its total loans and borrowings of RM177.5 million, alongside net operating cash inflows of RM334.3 million for the year. This positions DXN well to pursue growth opportunities while continuing to deliver value to shareholders. In line with its dividend policy, the board has declared a fourth interim dividend of 0.70 sen per ordinary share for FY26, amounting to RM34.8 million, payable on May 29, 2026. This brings total dividends for FY26 to 3.2 sen per share, or RM159.1 million, representing a payout ratio of 58.6%, consistent with the group’s policy of distributing at least 50% of net profit to shareholders. Executive chairman and founder Datuk Lim Siow Jin ( pix ) said looking ahead, the global operating environment remains shaped by ongoing geopolitical tensions. He said while these conditions introduce demand uncertainty and elevated energy costs, the group’s diversified geographic footprint and vertically integrated business model provide the resilience and flexibility to navigate these challenges effectively. “We are committed to enhancing our operational self-sufficiency. Development of our coffee plantations in Brazil, Bolivia, and Malaysia is progressing as planned,

alongside our manufacturing facilities across Latin America, the Middle East, and Asia. “Notably, on April 8, we entered into a 60 year lease agreement with Perbadanan Kemajuan Negeri Kedah for a 1.2 million sq ft industrial site in Bukit Kayu Hitam, Kedah. “This new facility will complement our existing operations in the state, creating an integrated manufacturing base in northern Peninsular Malaysia and significantly increasing our production capacity while maintaining centralised control over quality and efficiency. “Supported by steady membership growth across Latin America, Europe, and Africa, particularly encouraging traction in Argentina and Brazil, and underpinned by our commitment to embedding responsible ESG practices across our value chain, the group is well-positioned to deliver sustainable, long-term growth despite prevailing macroeconomic headwinds,” he said. the expansion of

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