Power Root profit sees a mighty surge

PETALING JAYA: Power Root Bhd’s net profit rose almost 156% to Rm12.67mil for its fourth quarter to March 31, 2020 due to an overall improvement in sales, strengthening of the US dollar which contributed to higher foreign exchange gain and an one-off impairment on trade receivables provided in the previous year’s corresponding quarter.

Meanwhile, revenue was up 13.57% to Rm90.4mil mainly attributable to the overall increase in both local and overseas sales. There was also a four sen dividend for the quarter, which was an improvement from the 2.9 sen paid in the same quarter of the previous year.

For its full year, Power Root’s net profit was up 83.46% to Rm51.38mil on the back of a 14.23% jump in revenue to Rm386.1mil.

Looking ahead, and being mindful of the ensuing movement control order (MCO), conditional MCO (CMCO) and post-mco period, Power Root is cautiously optimistic of its prospects in the near future as it adapts its future growth strategies to the post-covid-19 operating environment.

“Going forward, we are adapting our sales strategy for different consumer behaviour in a post-mco world. We will increase our focus on reaching potential customers online, while evaluating traditional marketing and promotional activities for the time being,” said Power Root.

Power Root said given that coffee typically enjoys inelastic demand, it is also maintaining new product launch plans for the year.

It will continue to improve on its production and cost efficiencies, increase focus and engagement with its sales force and distributors.