KUALA LUMPUR: Guan Chong Bhd
’s net profit surged more than fivefold to RM253.02mil in the second quarter ended June 30, 2026 (2Q26), from RM48.20mil a year earlier.
“The profit expansion in 2Q26 was anchored by effective management of raw materials purchase and pricing of cocoa ingredients—even as overall revenue adjusted in tandem with lower raw material prices,” the world’s fourth largest cocoa grinder said in a statement.
Guan Chong said lower finance costs also supported profitability, declining 45.4% to RM46.9mil from RM85.9mil a year earlier as lower bean prices reduced its working capital financing requirements.
Quarterly revenue, however, fell 53.6% to RM1.8bil from RM3.89bil previously, tracking lower cocoa bean prices while earnings per share rose to 9.23 sen versus 1.76 sen a year prior.
The group’s total borrowings fell 21.6% to RM2.50bil at end-June from RM3.19bil as at Dec 31, 2025, while net gearing improved to 0.93 times from 1.35 times.
Managing director and chief executive officer Brandon Tay Hoe Lian said the strong quarterly performance underscored the group’s ability to tap opportunities as chocolate manufacturers sought reliable and steady supplies of cocoa ingredients.
“Our presence across Asia and West Africa gives us a distinct competitive edge. As the largest cocoa processor in Asia, we are well-positioned to capitalise on rising regional demand for cocoa ingredients,” he said.
For the first half of 2026 (1H26), Guan Chong’s net profit more than doubled to RM376.6mil from RM142.8mil a year ago, while revenue declined 46% to RM4.42bil from RM8.19bil.
The stronger first-half profit was attributed to effective management of raw material purchases and cocoa ingredient pricing, as well as lower finance costs.
Guan Chong also strengthened its presence in Ivory Coast following the completion of its acquisition of a 25% stake in Transcao Côte d’Ivoire in April.
Tay said the group would focus on optimising Transcao’s operations and leveraging synergies with its existing Ivory Coast operations to meet growing European demand for single-origin cocoa ingredients.
“Looking ahead, the group will proactively manage supply chain risks stemming from ongoing geopolitical developments and potential weather disruptions on global cocoa bean production from the impending El Niño.”
The group declared a third interim dividend of 2.5 sen per share for FY26, amounting to RM68.5mil.
Together with its first and second interim dividends of 1.5 sen per share each, Guan Chong’s total dividend payout amounts to RM150.7mil.
