Friday 29 Mar 2024
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KUALA LUMPUR (Nov 13): Cocoa manufacturer Guan Chong Bhd continues to perform as its net profit for the third quarter ended Sept 30, 2017 (3QFY17) leaped 92% to RM29.7 million from the RM15.48 million recorded in the same quarter last year, mainly due to lower bean prices.

However, quarterly revenue slipped 9.1% to RM542.86 million compared to RM597.51 million in 3QFY16.

In its filing with Bursa Malaysia today, the group said the decline in revenue was mainly due to decrease in sales volume of cocoa cake and overall selling price of cocoa products.

Guan Chong's board of directors declared a second interim single-tier dividend of 1 sen per ordinary share to be paid on Dec 27, 2017.

For the cumulative first nine months of 2017 (9MFY17), net profit rose by 46% to RM58.33 million from RM39.84 million in the same period a year ago. In contrast, revenue fell 6.5% to RM1.66 billion from RM1.77 billion in 9MFY16.

On its outlook for the rest of the year, Guan Chong said the business environment for the financial year ending December 2017 is expected to be challenging, as the demand for cocoa solids remain uncertain amid continued volatility in cocoa bean prices.

"The group will continue to focus on turnaround efforts which include reducing inventory level, exploring new markets for its wide range of cocoa ingredients and optimising production according to market conditions," it added.

At market close today, Guan Chong shares were up 10 sen or 5.08% to settle at RM2.07 for a market capitalisation of RM989.27 million. Year to date, the share price has grown by 48.3%.

 

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