POWER ROOT ACHIEVES RECORD PROFIT OF RM51.4 MLN IN FY20

KUALA LUMPUR, May 28  -- Beverage maker Power Root Bhd posted a record net profit of RM51.37 million for the financial year ended March 31, 2020 (FY20), up 83.5 per cent from RM28.0 million in the preceding year.

Revenue grew 14.2 per cent to RM386.1 million from RM338.01 million previously, driven by higher local and export sales from the optimised distribution channels since 2018.

“Domestic sales climbed by 7.6 per cent to RM177.4 million from RM164.5 million, while exports revenue jumped 20.3 per cent to RM208.7 million from RM173.5 million previously,” it said in a statement today.

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Being part of the food and beverage industry, Power Root was deemed an essential service and thus allowed to operate throughout the Movement Control Order.

“With sufficient stock levels and distribution channels largely unaffected, Power Root was able to fulfil the demand from customers during this period,” it said.

Co-chairman Tengku Datuk Setia Putra Alhaj Tengku Azman Shah Alhaj said manufacturing entities for essential services were allowed to recommence at 100 per cent manpower starting April 29. 

“Thus we are now moving full speed ahead to bring our operations back to normal levels. 

“At the same time, we are highly cognisant of the changing consumer behaviour, with increased social distancing and higher safety regulations implemented at retail outlets. 

“Given that coffee typically enjoys inelastic demand, we will also be maintaining our new product launches for the new financial year,” he said.

Power Root declared a fourth interim dividend of 2.0 sen and a special dividend of 2.0 sen. 

“As such, the total dividend payout for FY20, which also includes the first, second and third interim dividend as well as special dividends, would amount to RM50.8 million or 98.9 per cent of Power Root’s FY20 profit,” he said, adding that this was in line with the group’s policy of distributing a minimum of 50 per cent of net profit attributable to shareholders.

Putra Alhaj said Power Root’s FY20 performance demonstrated its higher emphasis on bottom-line enhancement through widespread operations improvements.

“We will continue to implement further efficiency measures by setting higher performance targets for both sales and cost efficiencies, as well as further bolstering our workforce with highly-experienced personnel to optimise our production to meet our transformation plan targets,” he said.  

Founded in 1999, Power Root is a global beverage player, specialising in coffee, tea, chocolate malt drinks, and herbal energy drinks.

-- BERNAMA