Guan Chong Berhad recorded a 30.6% jump in net profit to RM123.6 million for the first quarter ended 31 March 2026 (1Q26), from RM94.6 million in the previous year, attributed to improved grinding margins and lower finance costs.
The better profit achieved in 1Q26 was despite a 39.1% decline in revenue to RM2.62 billion, from RM4.31 billion previously. The drop in revenue was due to a decrease in average selling prices of cocoa products—cocoa ingredients and industrial chocolate—in tandem with easing cocoa bean prices.
The deflated cocoa bean prices have in turn alleviated GCB from the working capital pressures and borrowing requirements faced by the Group when bean prices peaked at over USD 12,000/MT back in December 2024. As a consequence, the Group’s total borrowings declined by 35.2% to RM2.94 billion in end 1Q26, from RM4.54 billion previously on 31 March 2025.
