GUAN CHONG POSTS HIGHER NET PROFIT OF RM44.61 MLN IN Q2

KUALA LUMPUR, Aug 16 (Bernama) — Guan Chong Bhd’s (GCB) net profit grew 22.6 per cent to RM44.61 million in the second quarter (Q2) ended June 30, 2022, from RM36.38 million in the same period a year ago, backed by recovering global chocolate consumption in the post-pandemic era

The revenue of the world’s fourth largest cocoa grinder jumped to RM1.19 billion from RM876.22 million previously, an increase of 36.67 per cent due to an increase in sales volume of cocoa butter as the previously delayed shipments were being shipped out in this quarter.

“In addition, the improved selling price for cocoa solids also contributed to the higher revenue this quarter,” it said in a filing with Bursa Malaysia today.

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On prospects, it said the company has been adopting a cautious outlook on the future prospect and more cautious on investment and future plans.

“The company will place focus on expanding the market of high margin industrial chocolate and the optimisation of production according to the market conditions,” it said. 

In a separate statement, managing director and chief executive officer Brandon Tay Hoe Lian said the results reflect not only the recovering market but also the continuous effort to strengthen operations with efficiency and to meet the needs of markets in Asia, Europe and the United States.

“In the meantime, we will remain guarded of the industry outlook in light of the ongoing inflationary pressures faced globally and higher energy prices in Europe,” he said.

Tay also said the company’s financial upside continues to be positive as the new cocoa grinding facility in Ivory Coast would be commencing operations soon.

“The new plant will not only reinforce our position in the industry with a larger grinding capacity but also help attain sustainable growth to our future earnings,” he said. 

He said GCB’s Ivory Coast subsidiary is nearing completion, in which the new facility is expected to increase its annual capacity by 22 per cent or 60,000 metric tonnes (mt) to 337,000 mt.

GCB has declared a second single-tier dividend of 2.0 sen per share in respect of the financial year ending Dec 31, 2022, with the ex-dividend date on Sept 15, 2022 and payment date on Oct 10, 2022.

-- BERNAMA