Guan Chong Berhad achieved its record-high revenue of RM 5.3 billion for the financial year ended 31 December 2023 (FY2023), an increase of 21.0% as compared to RM4.4 billion in the previous financial year. The record revenue it said was in line with the rising cocoa bean prices, and contribution from its Ivory Coast operations for the full year.
However, the net profit for FY2023 decreased 31.4% to RM101.0 million from RM147.4 million previously, mainly due to increased finance costs from higher borrowings, lower grinding margins, and increased tax expenses.
Mr. Brandon Tay Hoe Lian Managing Director and CEO of Guan Chong Berhad said: “The strong revenue in FY2023 underscores the enduring demand for our cocoa ingredients among our clientele, despite the ever-rising selling prices.”
“Besides that, our grinding operation in Ivory Coast continues to see meaningful contributions to our profits, enabling us to benefit from the lower logistical costs of operating within proximity to the source of quality cocoa beans. The cocoa ingredients produced there will support our two industrial chocolate operations in Europe, where the demand for chocolate is greater.”
“Looking ahead, GCB will remain vigilant and observe the market conditions to ensure our operations globally are well-maintained, while we strive to optimise our production to meet customers’ demand.”
In the fourth quarter ended 31 December 2023 (4Q23), the Group posted 59.2% higher revenue of RM1.8 billion, from RM1.1 billion in the same period last year, attributed to higher selling prices of cocoa butter, cocoa solids, and industrial chocolate due to increasing cocoa bean prices.
However, the net profit in 4Q23 decreased 18.8% to RM15.3 million from RM18.8 million previously, mainly due to increased finance costs from higher borrowings and tax expenses.
