Guan Chong profit sends shares up 4%

  • Business
  • Tuesday, 14 Aug 2018

KUALA LUMPUR: Guan Chong Bhd is one of the top performer on Bursa Malaysia with shares up 4% in early trade after it posted a higher profit.

The cocoa ingredients manufacturer added eight sen to RM2.14 with 1.76 million shares done.

Guan Chong’s net profit jumped 88.04% to a record high of RM43.03mil in the second quarter ended June 30 from RM22.88mil a year ago due to improved margin.

It attributed the higher profitability to increased economies of scale, resulting from higher production volume to meet growing orders for cocoa ingredients from customers worldwide, as well as lower input costs.

Revenue for the quarter rose 1.92% to RM491.58mil from RM482.30mil a year ago mainly due to higher sales volume of cocoa ingredients, which rose 28%.

For the six months ended June 30, net profit surged to RM82.36mil from RM28.64mil a year ago due to increased sales volume and economies of scale.

Its revenue, however, fell 9.19% to RM1.01bil from RM1.11bil a year ago due to lower selling prices of cocoa ingredients.

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