The world’s fourth largest cocoa grinder Guan Chong Berhad recorded maiden operating profit of RM15.4 million on revenue of RM144.8 million from its Ivory Coast cocoa grinding facility in the first quarter of ended 31 March 2023 (1Q23).
The modern facility aims to be part of GCB’s close-to-source strategy to grind premium-grade cocoa beans and achieve competitive advantage in terms of time- and cost-savings compared to existing Asia-based factories. Moreover, GCB’s direct presence in Ivory Coast enables it to produce cocoa ingredients from single-country origin. With the new Ivory Coast cocoa grinding facility commissioned in 4Q22, GCB’s total annual grinding capacity has increased by 22% or 60,000 MT to 337,000 MT from 277,000 MT, alongside grinding capacities in Malaysia, Indonesia and Germany.
Managing Director and CEO of Guan Chong Berhad, Mr. Brandon Tay Hoe Lian “The maiden profit from Ivory Coast is only the beginning. Our establishment in the country is a linchpin to our growth plans of making GCB a truly international player, producing quality ingredients to serve the world’s foremost chocolate market.”
Meanwhile, GCB reported its financial results of 1Q23, with group revenue increasing by 11.3% to RM1.1 billion, from RM990.5 million previously, attributed to improved selling prices for cocoa solid and industrial chocolate ingredients. However, due to the lower margin of cocoa butter, and increased finance costs, the Group’s net profit decreased 55.4% to RM23.8 million in 1Q23 from RM53.3 million previously.
