Guan Chong 3Q net profit surges 47.7% on higher cocoa ingredients sales

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KUALA LUMPUR (Nov 12): Cocoa ingredients manufacturer Guan Chong Bhd recorded a 47.7% increase in its net profit for the third quarter ended Sept 30, 2018 (3QFY18) to RM43.87 million from RM29.7 million a year earlier, as revenue rose on higher sales, increased bean grinding and lower input costs.

Revenue in the quarter grew 10.3% to RM598.78 million from RM542.86 million in the previous year's corresponding quarter as the sales volume for cocoa ingredients grew 19.9%, the group said in a statement today.

"We are confident of delivering our best-ever performance in the current financial year ending Dec 31, 2018 (FY18), supported by increasing sales of cocoa ingredients on robust demand from the global chocolate industry," said Guan Chong managing director and chief executive officer Brandon Tay Hoe Lian.

For the nine months ended Sept 30, 2018 (9MFY18), net profit more than doubled to RM126.23 million from RM58.33 million in the previous corresponding period.

This was despite a 2.8% dip in revenue to RM1.61 billion in 9MFY18 from RM1.66 billion a year ago due to lower selling prices of cocoa ingredients.

Going forward, Tay said revenue contribution from the group's new 50,000 metric tonne facility would support production requirements in light of increasing orders.

Shares in Guan Chong closed up 10 sen or 3.7% at RM2.80 today to give the group a market value of RM1.34 billion.