KUALA LUMPUR: Guan Chong Bhd saw a surge in its net profit to RM66.9 million for the second quarter financial year 2024 (2Q24) from RM28.1 million in the corresponding quarter.
The cocoa grinder company attributed this to increased revenue from cocoa ingredients and a higher contribution from the company's industrial chocolate division in Germany.
"Despite the shortage of cocoa beans, global demand for chocolate continues to rise as tourism and festive activities increase," it said.
Guan Chong's revenue rose 91.6 per cent, to RM2.22 billion, an increase from RM1.16 billion due to increased selling prices and higher sales volumes of cocoa ingredients, particularly cocoa butter and cocoa powder.
Managing director and chief executive officer Brandon Tay Hoe Lian said earnings are expected to exceed last year's performance due to higher selling prices of cocoa ingredients and industrial chocolate and sustained delivery to clients.
"Looking ahead, we will remain cautious and manage our cash flow prudently to ensure sufficient working capital to sustain operations.
"While sourcing cocoa beans has become more challenging, we are managing our bean inventory efficiently to maintain high grinding levels to ensure timely delivery," he added.