Guan Chong Bhd (GCB) reported a 22.59% increase in net profit for the second quarter ended 30 June 2022 from RM36.39 million in the previous quarter. This was due to improved grinding margins and higher sales tonnage of cocoa ingredients following the recovery of global chocolate consumption after the pandemic.
The company, which is Malaysia’s largest Cocoa grinder, is mainly engaged in the manufacture of cocoa-derived food ingredients, namely cocoa mass, cocoa butter, cocoa cake and cocoa powder,
Revenue rose 36.67% to RM1.2 billion ($268.7 million), setting a new record for the company compared to RM876.23 million ($196.1 million) in the same period last year. The figures were partly due to the fulfilment of order backlog as well as some price increases for Cocoa solids.
The results reflect not only the recovering market but also our continuous effort to strengthen our operations with efficiency and meet the needs of our markets in Asia, Europe and the United States.
In the meantime, we will remain guarded on the industry outlook, in light of the ongoing inflationary pressures faced globally and higher energy prices in Europe.Brandon Tay Hoe Lian , GCB managing director and chief executive officer
However, net profit for the quarter fell by 16.25%, even though revenue increased. This was not explained in the report but could be due to higher input costs.
Tay Hoe Lian also drew attention to the company’s factory being developed in Côte d’Ivoire, which he said, is progressing well and nearing completion. Once finished, the plant is expected to increase the group’s annual capacity by 22% to 337,000 MT.
Even so, our financial upside continues to be positive, as our new grinding facility in Ivory Coast will commence 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.Brandon Tay Hoe Lian , GCB managing director and chief executive officer