Guan Chong Q2 net profit surges


  • Business
  • Friday, 12 Aug 2011

PETALING JAYA: Guan Chong Bhd (GCB), one of the largest cocoa processors in the region, recorded a 76.5% year-on-year jump in net profit to RM34.5mil in its second quarter ended June 30, 2011.

Revenue grew 23.6% year-on-year to RM334.6mil, and the better financial performance was attributed mainly to additional production from the group's new plant in Batam, Indonesia.

“While our Pasir Gudang (plant) maintained its full capacity in the quarter under review, our recently-commissioned Batam plant processed 13,000 metric tonnes of cocoa beans to raise the group's total production capacity to 32,000 metric tonnes,” said GCB managing director and chief executive officer Brandon Tay Hoe Lian in a statement yesterday.

Tay added that he was optimistic of further growth in current financial year, with the group's expanded capacity and sustainable global demand for cocoa.

“Demand for cocoa has held steady through the various economic cycles, even as the food and beverage industry continues to innovate various cocoa applications, and consumers worldwide favour chocolate,” said Tay.

For the first six months ended June 30, the group's net profit rose 64.4% year-on-year to RM64.5mil while revenue increased 15.7% year-on-year to RM624.6mil.

Apart from higher sales tonnage, the better financial performance was also due to reduced finance costs and recognition of tax incentives from increased export allowance.

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