KUALA LUMPUR (May 30): Cocoa products maker Guan Chong Bhd saw its net profit for the first quarter ended March 31, 2018 (1QFY18) surge seven times to RM39.3 million from RM5.75 million a year earlier, due mainly to increasing sales volume and an improved margin for the current quarter.
However, group revenue fell 17.7% to RM519.7 million from RM631.3 million in 1QFY17, mainly due to a decrease in overall selling price of cocoa products and a weakening of the US dollar against the ringgit.
In a filing with Bursa Malaysia, the group said it expects the business environment for the financial year ending Dec 31, 2018 (FY18) to be less volatile.
“We expect that our overall performance [will] remain positive, as strong growth of global demand for chocolate is projected,” the filing said.
Guan Chong will continue to focus on efforts to explore new markets for its wide range of cocoa ingredients, optimise production according to market conditions and expand overall grinding capacity.
As at 12.22pm today, Guan Chong fell 5.95% or 10 sen to RM1.58, with 226,100 shares done.