Power Root’s 1Q net profit plunges 81% on lower revenue

Power Root’s 1Q net profit plunges 81% on lower revenue
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KUALA LUMPUR (Aug 27): Power Root Bhd’s net profit for the first quarter ended June 30, 2021 (1QFY21) slumped 81.29% to RM2.01 million, from RM10.73 million a year ago, due to lower revenue.

Revenue fell 11.01% to RM74.68 million from RM83.92 million in 1QFY20, mainly attributable to lower export market revenue, the group said in a filing to Bursa Malaysia.

The group has proposed a first interim dividend of 0.5 sen per share.

On a quarter-on-quarter basis, Power Root’s net profit rose 7.44% from RM1.87 million in 4QFY20, while revenue grew 14.85% from RM65.03 million.

With the emergence of new Covid-19 variants and resulting economic lockdowns being reimplemented globally, the group remains cautious on its prospects for the current financial year.

“Power Root will continue to pursue bottom line enhancement measures by optimizing our sales force distribution locally and abroad, increasing product market coverage, improving on production efficiencies and launching new product variants to cater to changing customer tastes.

“We will also continue with customized advertising and promotion activities together with targeted sampling in retail outlets that allow it to enhance product awareness,” it said.

Power Root’s share price closed 3 sen or 2.17% lower at RM1.35 today, valuing the group at RM590.66 million.

S Kanagaraju