KUALA LUMPUR: Beverage maker Power Root Bhd posted its highest ever net profit at RM51.4 million in the year ended March 31, 2020 from RM28.0 million a year ago.
Power Root said the 83.5 per cent increase in net profit was due to the higher topline, increased operational efficiency and improved cost management resulting from its transformation plan.
It said group revenue grew 14.2 per cent to RM386.1 million from RM338.0 million previously, driven by higher local and export sales from the optimised distribution channels since 2018.
Its domestic sales edged up 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.
Power Root said being part of the food and beverage industry, it was deemed an essential service, and thus allowed to operate throughout the movement control order (MCO).
Nonetheless, the company said with sufficient stock levels and distribution channels largely unaffected, it was able to fulfil the demand from customers during this period.
Power Root 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 from April 29.
Thus, Tengku Putra AlHaj said the company was now moving full speed ahead to bring its 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.
"Hence, we are adapting our sales strategy to increase our focus on reaching consumers by leveraging on retailers' online presence, while re-evaluating our traditional marketing and advertising activities," he said.
For the fourth quarter ended March 31, 2020 Power Root's net profit more than doubled to RM12.7 million from RM5.0 million in the previous quarter.
This was due to increased revenue base, higher foreign exchange gain on strengthening of the US dollar against the ringgit as well as an one-off impairment on trade receivables recognised in the previous year's corresponding quarter.
The group's revenue rose 13.6 per cent to RM90.4 million from RM79.6 million a year ago on overall increase in local and overseas sales.
Power Root declared a dividend of 4.0 sen in respect of FY20, comprising a fourth interim dividend of 2.0 sen and a special dividend of 2.0 sen.
The total dividend payout for the year, 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 financial year 2020 profit.