KUALA LUMPUR (Aug 25): Cocoaland Holdings Bhd's share price rose 1.5% in Bursa Malaysia morning trade today after the candy manufacturer declared yesterday its first interim dividend of 10 sen a share despite reporting lower second-quarter net profit from a year earlier.

At 11.56am, Cocoland’s share price was up three sen or 1.5% at RM1.98, giving it a market capitalisation of RM453.02 million.

The group announced its financial results for the second quarter ended June 30, 2021 (2QFY21) yesterday, posting a net profit of RM3.26 million, down 7.4% year-on-year (y-o-y) from RM3.52 million for the previous year’s corresponding quarter.

Revenue for the quarter fell 2.3% to RM47.48 million from RM48.62 million.

It attributed the decline in performance to softer demand for gummies and hard candy in its contract manufacturing business, especially in China and the Philippines, as well as subdued demand for snack confectionery exported to Saudi Arabia.

However, this was partly offset by rising demand for in-house gummies in Vietnam, Hong Kong, Taiwan, China and Malaysia.

For the six months ended June 30, 2021 (6MFY21), its net profit rose 3.6% to RM8.95 million from RM8.64 million, while revenue was down 7.3% at RM101.6 million from RM109.65 million a year earlier.

“Prospects for the second half of 2021 (2H21) remains pretty much determined by the Covid-19 situation. The management foresees that the disruption will remain with us as a key operational challenge for most of the third quarter (3Q21),” said the group in a filing with the bourse.

It said it will continue to monitor the developments in relation to the pandemic, and looks forward to regain momentum by expanding its footprint in existing markets, broadening its distribution networks and continuing its cost-rationalisation measures.