KUALA LUMPUR (Feb 28): Cocoa grinder Guan Chong Bhd’s fourth quarter net profit slipped 18.76% to RM15.25 million or 1.30 sen per share, from RM18.78 million or 1.72 sen per share a year ago, dragged by increased finance cost from higher borrowings, and also due to lower grinding margins and higher tax expenses.

Revenue for the quarter ended Dec 31, 2023, however, jumped 59.16% to RM1.8 billion from RM1.13 billion previously, thanks to higher selling prices of cocoa butter, cocoa solids and industrial chocolate, the group said in a filing with Bursa Malaysia on Wednesday.

Full-year net profit fell 31.48% to RM101 million from RM147.41 million in FY2022, despite revenue hitting a record high of RM5.35 billion, up 21.03% from RM4.42 billion previously.

Guan Chong said it expects the cocoa industry to remain volatile due to supply shortages amid adverse weather conditions and diseases, which have led to rising cocoa bean prices and market uncertainties.  

“In response to this environment, the group is closely monitoring global developments and adjusting its growth and pricing strategies to ensure long-term sustainability. Despite short-term performance impacts, the group remains optimistic about the resilient demand for chocolate products in the long term," it said.

Guan Chong shares closed down one sen or 0.63% at RM1.57 on Wednesday, giving the group a market capitalisation of RM1.84 billion.