Guan Chong’s financial year 2020 net profit increases to RM223.19 million

KUALA LUMPUR: Guan Chong Bhd’s net profit for the financial year ended Dec 31, 2020 (FY20) rose to RM223.19 million from RM217.95 million in FY19.

Revenue increased to RM3.68 billion from RM2.94 billion previously, it said in a filing with Bursa Malaysia on Friday.

For the fourth quarter ended Dec 31, 2020, the group’s net profit added to RM47.27 million from RM43.28 million in the same quarter in 2019, while revenue rose to RM1.02 million from RM795.88 million previously.

Guan Chong said the increase of 28.6 per cent in turnover was mainly due to an increase in sales volume of cocoa products and revenue contributed by newly-acquired subsidiary Schokinag Holding GmbH.

On prospects, the group said it expects the economy and the consumption to start recovering in the second half of 2021, subject to the successful implementation of the vaccination programme in the major chocolate consuming countries.

“In the meantime, the implementation of the ‘Living Income Differential’ has been adjusted in the raw materials and products pricing through the market demand and supply.

“However, the effect in the longer term remains uncertain. Nevertheless, we are confident in our long-term prospect and the uptrend of future chocolate demand,” it added.

Guan Chong said it will continue to put strong focus on exploring new markets, especially in the European region, for its wide range of cocoa ingredients, as well as industrial chocolate, and to optimise production according to the market conditions.