PETALING JAYA: Power Root Bhd posted net earnings of RM12.67 million for its fourth quarter ended March 31, 155.7% higher than RM4.96 million seen in the previous corresponding quarter, 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.
Revenue for the quarter stood at RM90.4 million, from RM79.6 million previously.
For the full year, the group recorded its highest ever net profit of RM51.38 million, an increase of 83.5% from RM28 million in FY19 on higher topline, increased operational efficiency, and improved cost management resulting from its transformation plan.
Revenue grew 14.2% to RM386.1 million from RM338 million previously, driven by higher local and export sales.
Power Root declared a dividend amounting to 4 sen in respect of FY20, comprising a fourth interim dividend of 2 sen and a special dividend of 2 sen. As such, the total dividend payout for FY20 would amount to RM50.8 million or 98.9% of Power Root’s FY20 profit.
The group’s co-chairman Tengku Putra Alhaj Azman Shah Alhaj said while the group was moving to bring operations back to normal levels, it was adapting our sales strategy to increase our focus on reaching consumers by leveraging on retailers’ online presence.
“Our FY20 performance is an outstanding demonstration of our higher emphasis on bottomline enhancement through widespread operations improvements.”