A Quick Introduction to Power Root Bhd, a Food & Beverage Company in Malaysia
Power Root Bhd (KLSE: 7237) is a food and beverage (F&B) company listed in Malaysia. The company manufactures and distributes ready-to-drink or instant coffee, tea and energy drinks under the brands like Power Root, Alicafe, Ah Huat and others. For investors who are fans of F&B companies, Power Root might be a good addition to your watch list.
Basic information about the company
Power Root began its business in 1999 promoting herbal drinks made from Eurycoma longifolia Jack or commonly known as “Tongkat Ali” and Labisia Pumilia and Pathoina or “Kacip Fatimah”. Since then, it has grown it product portfolio to include instant coffee and tea under brands like Alicafe, Alitea, Ah Huat and more.
Besides instant premixed beverages, Power Root also introduced canned drinks like Power Root Extra Honey Tongkat Ali, Power Root Ginseng Tongkat Ali, Per’l Kacip Fatimah and others. It is also involved in a restaurant business, operating five Alicafe restaurants in Malaysia.
Power Root distributes its products in Malaysia and in overseas markets. According of its 2017 annual report, the former accounted for about 54% of Power Root’s revenue while the latter accounted for the remaining 46%.
No introduction of a company is fully complete without some financial numbers. As such, I will share some key metrics about Power Root to give investors a better overview of the company.
Firstly, let’s have a look at revenue. From the financial year ended 31 March 2013 (FY13) to FY17, Power Root grew its revenue from RM279.4 million to RM399.3 million, up by 42.9% during the period.
Next, the company grew its profit after tax from RM35.3 million in FY13 to RM47.2 million in FY17, up by 33.7% during the time frame. Earnings per share grew from 11.46 sen to 14.18 sen, up by 23.7% during the period.
Lastly, dividend per share grew from 7 sen in FY13 to 11.5 sen in FY17, up by 64% in all.
In all, we can see that Power Root has been growing its business in the last five years, and has been sharing the spoils with its shareholders with growing dividends.