PETALING JAYA: Guan Chong BhdThe outlook for the future remains healthy, supported by sustained demand for chocolate as global air travel and tourism recover.
For the third quarter ended September 30, 2022 (3Q22), the cocoa maker’s revenue increased 10% year-on-year (year-on-year) to RM1.1 billion thanks to the increase in the selling price of cocoa solids and the improvement in the volume of cocoa butter sales.
Profits, however, fell 10.7% year-on-year to RM30.8 million as margins were hit in the quarter due to a loss in market value resulting from the weakening of the ringgit by against the US dollar.
Rising financial costs, interest rates and energy costs in Germany also impacted 3Q22 earnings, he said in a filing with Bursa Malaysia.
Basic earnings per share fell to 2.89 sen in the quarter under review, from 3.32 sen in the same period last year.
Guan Chong recorded an unrealized foreign exchange loss of RM17.1 million during the period due to the strengthening of the US dollar against the ringgit and mainly from the group’s mark-to-market US dollar borrowings.
Managing Director and Chief Executive Brandon Tay Hoe Lian said the group remained optimistic about recording stable profits as it continued to record growing futures sales for its cocoa ingredients for the financial year. 23.
“Our business faces rapidly changing market dynamics, such as rising interest rates and rising energy costs in Europe. Despite this, we have maintained profitability so far for the year.
“We are circumspect in the face of challenges and will continue to focus on operational efficiency to maintain our profit margins,” he said in a statement.