KUALA LUMPUR (June 29): Hai-O Enterprise Bhd’s net profit fell 7.54% to RM9.57 million in the fourth quarter ended April 30, 2020 (4QFY20) from RM10.35 million a year earlier, as Malaysia’s Movement Control Order (MCO) to curb the Covid-19 pandemic impacted the traditional Chinese medicine retailer's business.

In filings with Bursa Malaysia today, Hai-O, the businesses of which include multi-level marketing operations, said revenue fell to RM53.687 million from RM69.995 million.

"The unexpected and extended nature of the phased lockdown presented unprecedented challenge to the group, which had swiftly and proactively instituted various actions and measures to mitigate the impact," Hai-O said.

For the full year, Hai-O said cumulative net profit fell to RM32.23 million from RM47.74 million a year earlier. Revenue dropped to RM255.16 million from RM328.41 million.

Despite achieving lower profit, Hai-O proposed a final single tier dividend of four sen a share, which brings FY20 full-year dividends to nine sen.

The company said the four sen dividend is subject to shareholders' approval at the company's annual general meeting. "The dates of entitlement and payment in respect of the aforesaid dividend will be determined and announced by the company in due course," Hai-O said.

Moving forward, the group said it will continue to optimise costs, re-strategise business plans, strengthen its existing digital infrastructure, and enhance its social media presence and digital advertising to reach out to existing and potential customers.

In anticipation that Covid-19 will lead to greater focus on healthcare, the group said it hopes to fortify its position as a premier healthcare company in Malaysia.

"In view of the above, the board of directors expects the group to remain profitable amidst the challenging business environment in the next financial year," Hai-O said.

At 4:18pm today, Hai-O's share price rose one sen or 0.54% to RM1.85, valuing the group at RM534.14 million. The stock saw 78,400 shares traded.

Malaysia's MCO, which was initially scheduled between March 18 and March 31, requires non-essential businesses to stop operations, while the public was ordered to stay at home to curb the Covid-19 outbreak.

On March 25, Prime Minister Tan Sri Muhyiddin Yassin said the government decided to extend the MCO until April 14, because updates from the National Security Council and Health Ministry indicated an increase in Covid-19 cases.

On April 10, Muhyiddin said the government was extending the MCO until April 28.

On April 23, Muhyiddin said the MCO would be extended for another two weeks until May 12.

On May 4, news reports, quoting Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob, indicated that regulations under phase four of the MCO were null and void with the commencement of the Conditional Movement Control Order (CMCO) or phase five of the MCO.

On May 10, Muhyiddin said the CMCO would be extended to June 9.

On June 7, Muhyiddin said the CMCO which was scheduled to expire on June 9, would be replaced with the Recovery Movement Control Order (RMCO) beginning June 10 until Aug 31.