Cocoaland Q2 margin improves on better product mix

KUALA LUMPUR: Candy maker Cocoaland Holdings Bhd posted a higher earnings in the second quarter as better product mix contributed to improved profit margin.

Net profit jumped 51% to RM8.6mil in the three -month ended June 30, but revenue fell 10.4% to RM58.8mil.

The drop in revenue was due to lower demand for gummy, hard candy and Cocopie in both domestic and export markets, the company said in a filing with Bursa Malaysia today.

"The group is of the view that overall business environment is expected to remain challenging as the result of domestic economy slowdown, low consumer sentiment and stricter regulatory compliance," it said.

Cocoaland said volatility of material and production costs are among its major concerns going forward.

"Despite of this, the group will undertake actions to strengthen its core competencies and improve operational efficiency to remain competitive among industry players," it said.

"The group will continue to accelerate its' expansion in the global market to ensure sustainable growth of the business."