Guan Chong 2Q earnings slip on weaker sales

By NUR HAZIQAH A MALEK / Pic Source gcbcocoa.com

GUAN Chong Bhd’s net profit decreased by 36.15% year-on-year (YoY) to RM36.39 million on lower revenue for second quarter ended June 30, 2021 

Revenue decreased marginally by 3.79% YoY to RM876.23 million due to lower sales volume of cocoa products during the quarter. 

In a filing to Bursa Malaysia yesterday, the Johor-based group noted that the container shortage issue will continue to pose a problem to the cocoa industry as it increases freight cost. 

“We expect this issue to persist at least until the beginning of next year and, hence, we foresee shipment this year will be delayed. 

“The issue will only slightly affect our cost and shipments on the import of cocoa beans,” it said in a filing to Bursa Malaysia yesterday. 

Guan Chong remains confident of its long-term prospects and the future chocolate demand. 

“The group will continue to put strong focus on exploring new markets, especially in the European region, for its wide range of cocoa ingredients as well as industrial chocolate, and to optimise production according to the market conditions,” it said. 

For the year-to-date period, the group’s net profit eased from RM129.14 million to RM70.29 million despite revenue increasing from the previous year’s RM1.82 billion to the current RM1.84 billion. 

RELATED ARTICLES

Tuesday, November 13, 2018

DPI appoints Affin Hwang for IPO

Wednesday, April 10, 2019

Worst performing counters in 1Q19

Thursday, November 25, 2021

Two Serba Dinamik board members resign