DXN Holdings Bhd which reported almost flat earnings for the second quarter ended August 31, 2023 yesterday, announced that it has made it a policy to start paying out at least 50 per cent of its net profit as dividends.
The company halted trading in its shares for an hour, until 10am, following its announcements.
In a filing with Bursa Malaysia Securities Bhd, DXN said the dividend policy is designed to enable shareholders to participate in DXN’s profits, while also maintaining an adequate level of reserves to support future growth.
The company announced a second interim dividend of 0.9 sen a share for its financial year ending February 29, 2024, after posting RM76.0 million in net profit on RM458.3 million revenue for the second quarter.
It said revenue was up 15.7 per cent from a year ago on continuing sales growth in Latin America, India and Middle East. Low gross profit margin and higher operating expenses however kept net profit almost flat, compared with the second quarter ended August 31, 2022.
Net profit for the six-month period ended August 31, 2023 stood at RM153.6 million.
“Barring any unforeseen circumstances, DXN targets a payout ratio of at least 50 per cent of its audited consolidated profit after taxation attributable to shareholders for each financial year, to be paid quarterly, after excluding non-operating income that is capital in nature,” the company said.
The dividend policy takes effect immediately.
DXN’s share price closed at 63 sen yesterday.