DXN Sets Global Benchmark in ESG While Accelerating LATAM Growth

ESG Leadership as a Competitive Advantage

DXN Holdings Bhd (KLSE: DXN) has taken a decisive step in global ESG leadership with the successful completion of Phase 1 of its MillionMakers™ Direct Worker Voice (DWV) Human Rights Due Diligence (HRDD) platform, covering more than 1,700 workers across its factories in Malaysia, India, and China. This initiative positions DXN as the first company worldwide to operationalise ILO’s 11 forced labour indicators and embed UNGP-aligned HRDD directly into manufacturing operations.

Unlike peers who outsource manufacturing or rely on white-label arrangements, DXN’s model of direct worker engagement strengthens investor confidence by providing verified ESG data at scale. This move future-proofs DXN against regulatory tightening under EU CSDDD, US Forced Labor Prevention Act, and UK Modern Slavery Act, effectively transforming compliance risk into a competitive moat.

Growth Momentum Anchored in Latin America

Complementing its ESG edge, DXN continues to demonstrate robust earnings visibility through geographic diversification. Latin America now accounts for nearly 60% of FY25 sales, led by Peru’s sustained market leadership and Argentina’s rapid rise into DXN’s global Top 10 markets. The performance in LATAM highlights the scalability of DXN’s business model, expanding beyond its traditional strongholds in Asia and the Middle East, and underpins resilient USD-denominated cash flows.

This dual growth engine: ESG leadership and LATAM market strength, ensures that DXN’s fundamentals remain aligned with global investor expectations for both financial performance and sustainability credentials.

Governance and Capital Discipline

DXN’s recent Dubai property acquisition for RM7.4 million (less than 0.6% of net assets) underscores its disciplined capital allocation approach. The acquisition, vetted by independent directors and external advisers, is strategically positioned as a brand hub in the MENA region rather than a balance sheet risk. With transparency and accountability emphasised by the Founder and Executive Chairman Datuk Lim Siow Jin, governance remains a central pillar underpinning long-term value creation.

Investment View

DXN offers investors a unique blend of growth and resilience:

· Structural Growth: Expanding global footprint with LATAM now the largest regional revenue contributor.

· ESG Leadership: First-mover advantage in embedding worker voice into HRDD at scale, setting a global benchmark.

· Governance Strength: Disciplined capital deployment and proactive regulatory compliance bolster investor confidence.

We believe DXN is well-positioned as a Malaysian multinational champion that not only scales earnings globally but also differentiate itself through verifiable ESG leadership. This dual advantage supports sustainable dividends, resilient access to capital markets, and premium brand positioning in the nutraceutical space.

DXN Holdings Bhd reported that Peru and Argentina have become among its top-performing markets, highlighting the company’s ongoing global growth. Latin America now accounts for nearly 60% of DXN’s sales for the financial year ended February 28 2025, with Peru maintaining a leading position and Argentina on track to join the firm’s global Top 10 markets.