Guan Chong's Net Profit Soars To RM253.02 Mln In 2Q
KUALA LUMPUR, Aug 24 (Bernama) -- Guan Chong Bhd's net profit surged to RM253.02 million in the second quarter (2Q) ended June 30, 2026 compared with RM48.20 million in 2Q last year.
In a filing with Bursa Malaysia, the manufacturer of cocoa products said the improved performance was mainly driven by effective management of raw material purchase and cocoa ingredient sales position, which enhanced margins and profitability.
"Furthermore, lower borrowing levels during the quarter contributed to a reduction in finance costs," it said.
However, its revenue for the quarter declined to RM1.80 billion from RM3.88 billion previously due to lower selling price for cocoa products, which is in line with lower bean prices.
For the first half of 2026 (1H 2026), Guan Chong posted a higher net profit of RM376.59 million versus RM142.80 million previously, while revenue fell to RM4.42 billion compared with RM8.19 billion in the same period a year ago.
On prospects, the group said chocolate demand is expected to recover gradually in the second half of 2026, particularly in the fourth quarter of its financial year ending Dec 31, 2026, as easing cocoa inflation and moderating prices improve affordability and encourage consumers to resume or increase purchases.
"The premiumisation trend in the chocolate industry is also expected to persist, reinforcing longer-term growth ambitions in the premium category.
"Over the longer term, the structural demand outlook remains positive, supported by the ongoing shift towards real chocolate reformulation as manufacturers move away from substitute ingredients," it said.
Guan Chong said it continues to closely monitor market developments and implement proactive measures to secure a consistent and reliable supply of cocoa beans, ensuring operational continuity and resilience while carefully managing working capital to maintain adequate liquidity.
"The group remains committed to its core cocoa ingredient processing business while strategically expanding into the industrial chocolate segment and optimising production in line with evolving market conditions," it added.
-- BERNAMA