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Guan Chong earnings surge in Q4


In a filing with Bursa Malaysia, the cocoa-related product manufacturer announced that its net profit in the final quarter of FY17 rose to RM30.83mil compared to RM2.74mil registered a year earlier.

In a filing with Bursa Malaysia, the cocoa-related product manufacturer announced that its net profit in the final quarter of FY17 rose to RM30.83mil compared to RM2.74mil registered a year earlier.

Improved margin, unrealised gain from commodity futures contract boost profit

PETALING JAYA: Cheaper cocoa beans and an unrealised gain from commodity futures contract led Guan Chong Bhd ’s bottom line in the fourth quarter (Q4) ended Dec 31, 2017 (FY17) to surge by over 11 times year-on-year (y-o-y).

In a filing with Bursa Malaysia, the cocoa-related product manufacturer announced that its net profit in the final quarter of FY17 rose to RM30.83mil compared to RM2.74mil registered a year earlier.

“The higher net profit is mainly due to improved margin and also unrealised gain derived from commodity future contract for the current quarter as compared to preceding year’s corresponding quarter,” it said.

However, the group’s revenue during the quarter in review has fallen by 9.2% y-o-y to RM493.83mil, primarily due to the drop in sales volume of cocoa solids and overall selling price of cocoa products.

Guan Chong did not declare any dividend in the fourth quarter. Earnings per share was at 6.45 sen.

As for the full year, net profit more than doubled to RM89.16mil from RM42.58mil a year earlier. This was despite the group’s lower overall revenue, which declined by 7.15% y-o-y to RM2.15bil in FY17.

Moving forward, Guan Chong expects the business environment in FY18 to be less volatile compared to last year.

Corporate News , Guan Chong

   

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