KUALA LUMPUR: Guan Chong Bhd, the world’s fourth largest cocoa grinder, saw net profit surge 38 per cent to RM60.5 million in the third quarter (Q3) ended September 30 2019 from RM43.9 million a year ago.
This was due to higher sales volume of cocoa ingredients and enhanced operating efficiency, Guan Chong said in a statement today.
It recorded 24.1 per cent year-on-year increase in sales volume of cocoa ingredients for the quarter, underpinned by robust global demand for chocolate products.
In line with larger volume, group revenue rose 24.4 per cent to RM744.6 million from RM598.8 million in the same quarter last year.
For the nine months, group revenue rose 33.3 per cent to RM2.1 billion from RM1.6 billion previously on higher sales volume.
In line with topline growth, its nine-month net profit rose 38.4 per cent to RM174.7 million from RM126.2 million a year ago.
The growth was supported by the recent 25 per cent expansion in annual grinding capacity to 250,000 tonnes in end-1Q19, with the group achieving near-full capacity utilisation at 98 per cent in 3Q19.
Brandon Tay Hoe Lian, managing director and chief executive officer of Guan Chong, said with the robust demand and high capacity utilisation, its continued to produce a strong performance.
“At the current rate, we are likely set for a bumper year with record profit performance for FY2019. We are targeting significant growth in the next five years to strengthen our position as a global cocoa ingredients supplier, as we increase our production capacity and pursue more exports to existing and new markets.
“This comes as demand of chocolate remains on an uptrend, due to rising consumption in major markets like Europe and the United States, and sanguine Asian demand on rising affluence and appetite for cocoa products,” he added.