Guan Chong plans RM50mil capex for German plant


KUALA LUMPUR: Guan Chong Bhd has announced plans to invest RM50mil in capital expenditure over the next two years in its German plant Schokinag Holding GmbH.

It said the funding will go towards capacity expansions for the Mannheim-based plant as it aims to ride the recovery in Europe in as borders reopen.

This comes as the group posted a net profit of RM34.46mil in Q3FY21, which represents a 26.35% decline from RM46.78mil in the previous corresponding quarter as higher freights costs and lower margins put pressure on its bottomline.

Earnings per share was 3.32 sen compared to 4.61 sen in 3Q20.

The group declared a dividend of one sen per share, bringing year-to-date payout to two sen per share.

Group revenue increased 18.6% to RM998.1mil from RM841.6mil in 3Q20, underpinned by contributions from Schokinag and better overall sales tonnage.

Over the nine months period to Sept 30, Schokinag stood out with revenue growth of 21%, outpacing the entire group's 6.5% growth over the same period.

"The better performance in Schokinag, even without new capacity put in, is not only a good indication of economic recovery in the European region but also a reflection of our German team in growing our market share in industrial chocolate in Europe.

"Hence, we believe the decision to expand Schokinag's capacity is necessary to support the team in their growth ambition, and we will continue to evaluate other expansion options where needed to capture the ongoing opportunities," said Guan Chong managing director and CEO Brandon Tay Hoe Lian in a Monday statement.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

GUan Chong , Cocoa , Schokinag

   

Next In Business News

Unilever will not raise rejected 50 bln pound bid for GSK consumer arm
ANALYSIS- US$ churns as investors bet on growth outside US
Wall Street sell-off deepens, Nasdaq confirms correction
Oil price up near 7-year highs after Iraq-Turkey pipeline outage
Crowding the skies
BCorp to divest entire 71.73% stake in Berjaya Higher Education
Tenure limit of independent directors set at 12 years
Nestcon secures RM188.5mil construction contract
Texchem to buy 28% stake in Sushi King for RM102.2mil
Proton to introduce smart automobile's new energy vehicles in Asean

Others Also Read


Vouchers