KUALA LUMPUR (May 23): Power Root Bhd’s (KL:PWROOT) net profit fell 46.22% to RM8.92 million for its fourth quarter ended March 31, 2024 (4QFY2024), from RM16.59 million a year earlier, dragged down by higher advertising and promotion spending, and staff costs.

Earnings per share dropped to 1.8 sen from 3.9 sen in 4QFY2023, the home-grown beverage company’s bourse filing showed.

Quarterly revenue inched up 1.32% to RM114.25 million from RM112.76 million, lifted by higher export revenue.

For the full year, Power Root's net profit declined 29.27% to RM41.56 million, from RM58.76 million in FY2023, as revenue shrank 8.01% to RM419.27 million from RM455.76 million.

Power Root said the uncertainties that posed risks to its business include geopolitical tensions, and volatility in both foreign exchange and commodity prices.

“Additionally, an inflationary economic environment coupled with potential changes in regulations relating to our business will contribute to cost pressures,” it added.

Against this backdrop, the group said it will continue to focus on improving efficiencies by seeking opportunities in potential upstream integration activities and expand the distribution channels in both local and overseas markets with effective market penetration activities.

Shares in Power Root closed unchanged at RM1.77 on Thursday, bringing the group a market capitalisation of RM818 million.