KUALA LUMPUR: Guan Chong Bhd’s net profit tumbled 68% to RM5.28mil in the first quarter ended March 31 from RM16.5mil a year earlier mainly on lower gross profit margin.
The lower gross profit margin was due to a drop in the selling price of cocoa cake and powder and a hike in cocoa bean price and writedown of inventories.
Its pre-tax profit fell to RM6.44mil from RM22.72mil before.
However, revenue for the quarter rose 31.7% to RM479.6mil from RM364.2mil a year earlier, mainly due to higher sales volume and selling price of cocoa butter.
Its earnings per share (EPS) for the first quarter stood at 1.11 sen versus 3.47 sen previously.
Commenting on its prospects, Guan Chong said the group expected the business environment for the cocoa grinding industry to stage a steady recovery for the financial year ending Dec 31, 2014 in tandem with a recovery in the developed economies.
“Going forward, the group will continue to explore new markets for its wide-ranging cocoa ingredients to reinforce our position as a global integrated producer of cocoa ingredients.
“The group will also expand the market reach for our new business segment of industrial chocolate.
“At the same time, it will also ensure that production costs are contained to enhance our competitiveness and profitability,” it said.
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