Guan Chong 2Q net profit climbs RM44m, declares 2 sen dividend

by ANIS HAZIM / Source:

GUAN Chong Bhd’s net profit rose 22.89% to RM44.61 million for the second quarter ended June 30, 2022 (2Q22), from RM36.39 million a year ago on higher revenue.

Earnings per share rose to 4.22 sen from 3.51 sen previously, it said in a filing to Bursa Malaysia today.

Quarterly revenue was up 36.78% to RM1.2 billion compared to RM876.23 million a year prior, mainly driven by higher sales volume of cocoa butter and improved selling price for cocoa solids.

The group declared a second interim single-tier dividend of two sen per ordinary share, to be paid on Oct 10.

On a quarterly basis, Guan Chong’s net profit fell 16.25% from 53.25 million in 1Q22, while revenue rose 20.89% from RM990.53 million in 1Q22.

Commenting on its prospects, the group opined that the latest signs of recession may add “more bearish” effect to chocolate demand although it is always considered as a recession-proof affordable luxurious consumer product.

“Hence, we are adopting a cautious outlook on the future prospect and are more cautious on our investment and future plan,” it said.

Meanwhile, the group will focus on expanding the market of high margin industrial chocolate and the optimisation of production according to the market conditions.

Guan Chong’s share price closed 1.66% or four sen higher to RM2.45, giving it a market capitalisation of RM2.64 billion.