Cocoa Grinder Guan Chong 2021 Profits Impacted By Margins And Logistic Costs

The world’s fourth-largest cocoa grinder Guan Chong Berhad reported a 9.5% increase in net profit to RM51.2 million in the quarter ended 31 December 2021 (4Q21) compared to RM46.8 million in the previous corresponding period, driven by stronger revenue and operating margins. 4Q21 Group revenue grew 6.4% to RM1.1 billion from RM1 billion, led by higher sales tonnage during the period amidst the reopening of economies and higher consumption during the festive season.

For the financial year ended 31 December 2021 (FY2021), Group revenue stood higher at RM3.9 billion versus RM3.7 billion a year ago. However, the Group registered a lower net profit of RM156 versus RM222.7 million, due to competitive margins committed and higher freight costs registered during FY2021.

Mr. Brandon Tay Hoe Lian Managing Director and CEO of Guan Chong Berhad “We believe the completion of our grinding facilities in Ivory Coast, which is expected to provide us with an additional 60,000 MT of capacity per year, will help address the higher demand received from both our new and existing clients.”

“Moving into the year 2022, we are optimistic in capitalising on the recovering economy and delivering a better performance in the new year to come.” The Group’s new Ivory Coast grinding facility is slated to start operations in mid-2022.

GCB declared a final single-tier dividend of 2 sen per share in respect of FY2021, pending shareholders’ approval in the forthcoming Annual General Meeting. Including the first interim dividend and a second interim dividend of 1.0 sen respectively, this brings the total dividend payout to date to RM42 million, representing 27.0% of FY2021 net profit.

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