PASIR GUDANG: The world’s fourth largest cocoa grinder Guan Chong Bhd saw lower cocoa butter prices and higher interest rates affecting the group’s financial performance in the fourth quarter ended Dec 31, 2022 (4Q22), registering a lower net profit of RM20.3 million versus RM50.1 million in the previous year’s corresponding quarter.
The group’s revenue in 4Q22 however increased 3.8% to RM1.13 billion versus RM1.09 billion last year, backed by 6.8% increase in sales tonnage year-on-year and higher average selling prices for cocoa powder.
Guan Chong Bhd managing director and CEO Brandon Tay Hoe Lian said, “Our 4Q22 reflects that the challenging environment remains for us to maintain our grinding margins – the lower cocoa butter prices and high interest rates are also not helping.”
However, he added that they have strengthened their business model now that their new grinding facility in Ivory Coast is up and running.
“From here, we will be able to supply single-origin cocoa ingredients from Ivory Coast not only to our Germany plant but also the rest of Europe, so that we can target the premium chocolate demand there and optimise profits as a group,” he said.
Meanwhile, the group’s industrial chocolate subsidiary in Germany, SCHOKINAG-Schokolade-Industrie GmbH (SCHOKINAG), saw energy costs reduced in line with the lower natural gas and oil prices. As a result, SCHOKINAG turned to black in 4Q22 from a marginal loss in 3Q22 due to the higher energy cost caused by the Russia-Ukraine conflict.
For the financial year ended Dec 31, 2022 (FY2022), the group achieved its highest-ever revenue of RM4.4 billion, 12.6% higher than RM3.9 billion in the previous financial year, while FY2022 net profit reduced marginally by 3.8% to RM149 million from RM154.8 million previously.
Brandon said, “GCB has come a long way since our listing in 2004. We have amplified our revenue from RM300 million and reached the RM4 billion mark currently, driven by our strong desire to grow the business.”
“GCB will remain focused on our growth path by further strengthening our position as the fourth largest cocoa grinding, and maintaining our role as a key player in the global chocolate supply chain,” he added.
