28-05-2025
Guan Chong optimistic on growth despite cocoa price uncertainties
KUALA LUMPUR: Guan Chong Bhd said the outlook for cocoa prices remains uncertain despite a slight decrease since early 2025.
The group, one of the world's biggest cocoa processors, noted that prices continue to reflect market sensitivity to supply disruptions.
'While a slight reduction in demand is anticipated, the overall outlook remains uncertain, with potential for both stabilisation and continued volatility depending on future developments in production and global economic conditions,' it said.
In the first quarter ended March 31, Guan Chong posted a slightly lower net profit of RM99.2mil, or earnings per share of 8.05 sen from RM101.3mil, or 7.83 sen a year ago.
Revenue surged to RM4.3bil against RM1.87bil in the year-ago quarter. The increase of 130.2% in turnover is mainly due to a higher selling price for cocoa products.
Guan Chong is closely monitoring market developments and taking proactive steps to secure a stable supply of cocoa beans to maintain uninterrupted factory operations.
'At the same time, the group is carefully managing its working capital to ensure adequate liquidity for efficient and seamless business performance.
'Looking ahead, the group will continue to focus on its core business of cocoa ingredient processing while also expanding into the higher-margin industrial chocolate market and optimising production in accordance with market conditions,' it said.
