KUALA LUMPUR (Nov 18): Cocoa processing company Guan Chong Bhd is likely set for a "bumper year" with record profit performance for its financial year 2019 (FY19), after its 3Q net profit jumped 38% year-on-year.

Its net profit for the three months ended Sept 30, 2019 (3QFY19) rose to RM60.53 million from RM43.87 million, while revenue expanded 24% to RM744.61 million from RM598.78 million, its stock exchange filing today showed.

The group, the world's fourth largest cocoa grinder, declared a third interim dividend of one sen per share in respect of FY19, payable on Jan 3, 2020.

The improved 3QFY19 pushed its cumulative nine-month (9MFY19) net profit to RM174.65 million, up 38.4% from RM126.23 million in the corresponding period a year ago, while cumulative revenue increased 33% to RM2.15 billion from RM1.61 billion.

In a press statement, Guan Chong’s managing director and chief executive officer Brandon Tay Hoe Lian said the group saw robust demand for its products and recorded a high capacity utilisation.

The group’s growth was supported by a recent 25% expansion in annual grinding capacity to 250,000 metric tonnes in 1QFY19. By 3QFY19, Guan Chong achieved a near-full capacity utilisation, at 98%.

“With the robust demand and high capacity utilisation, we continued to produce a strong performance. At the current rate, we are likely set for a bumper year, with record profit performance for FY19.

“We are targeting significant growth in the next five years to strengthen our position as a global cocoa ingredients supplier, as we increase our production capacity and pursue more exports to existing and new markets. This comes as demand of chocolate remains on an uptrend, due to rising consumption in major markets like Europe and the United States, and sanguine Asian demand on rising affluence and appetite for cocoa products,” Tay said.

Guan Chong shares rose 16 sen or 6.81% to close at RM2.51 today, after three million shares exchanged hands, giving it a market capitalisation of RM2.53 billion.