Power Root’s 2Q net profit almost tripled to RM15.6m on higher revenue, forex gain

KUALA LUMPUR (Nov 22): Power Root Bhd’s net profit almost tripled to RM15.62 million in the second quarter ended Sept 30, 2022 (2QFY2023), from RM5.6 million a year earlier, mainly due to higher revenue and foreign exchange (forex) gain.

The instant and canned beverage manufacturer’s earnings per share leapt to 3.7 sen versus 1.3 sen, according to the group’s filing on Tuesday (Nov 22).

Revenue for the quarter increased 59.33% to RM128.79 million as compared to RM80.83 million the prior year, carried by higher revenue from both the local and export markets.

For the six months ended Sept 30, 2022 (6MFY2023), Power Root’s net profit quadrupled to RM30.89 million from RM7.61 million a year prior, as cumulative revenue rose 54.89% to RM240.87 million from RM155.51 million.

Touching on the group’s prospects for FY2023, Power Root said its local and export markets have grown despite the challenging business environment of high raw material prices, higher overhead costs and distribution costs.

“We will continue to seek opportunities to grow both the local and export markets through improving our product offerings in terms of new variants, improved taste and quality and continuously enhance the operational efficiencies of our core operating divisions such as factory operations, sales and marketing,” the group added.

Shares in Power Root ended four sen or 1.79% higher at RM2.27, giving the group a market capitalisation of RM1 billion.