KUALA LUMPUR: Guan Chong Bhd posted a higher net profit of RM219.39 million for the financial year ended Dec 31, 2019 (FY19) from RM190.11 million in FY18.
Revenue rose to RM2.94 billion from RM2.27 billion previously.
The world’s fourth largest cocoa grinder said this was attributable to a 20.1 per cent year-on-year jump in sales volume for cocoa ingredients, in addition to enhanced operating efficiency.
“The growth in sales volume was supported by an expanded annual grinding capacity of 250,000 metric tonnes (MT) since the first quarter of 2019, compared to 200,000 MT previously,” it said in a statement today.
Managing director and chief executive officer Brandon Tay Hoe Lian said the company expanded its grinding capacity in 2019 to supply increasing orders for cocoa ingredients and expected the strong demand to continue in 2020.
“Furthermore, we are currently undertaking our growth plans to be present in new markets internationally,” he said.
He said the company is currently en route to enter Germany, the largest chocolate market in Europe, via the ongoing acquisition of industrial chocolate maker Schokinag Holding GmbH which is expected to be completed in the first quarter of this year.
“This is complemented with an upcoming new cocoa grinding facility in Cote D’Ivoire, Africa, in 2021, the world’s largest producer of cocoa beans and the primary source of cocoa beans for Europe.
“While we maintain our leading position in Asia, we strive to grow in new markets, as well as strengthen our brand as one of the leading cocoa ingredients producers in the world,” he added.
Guan Chong has proposed a final dividend of one sen per share for FY19, subject to the approval of shareholders at the forthcoming annual general meeting, as well as the first, second and third interim dividends, with the total expected dividend payout for FY19 amounting to RM34.6 million or 15.8 per cent of net profit.