Guan Chong’s 2Q profit falls 28% to RM48.2mil

KUALA LUMPUR: Guan Chong Bhd, which posted a 28% drop in net profit for the second quarter ended June 30 (2Q25), said it will continue to focus on its core cocoa ingredient processing business.

At the same time, the group is expanding into the higher-margin industrial chocolate market and optimising production in line with market conditions.

In 2Q25, Guan Chong’s net profit fell to RM48.2mil from RM67mil a year earlier, with earnings per share slipping to 1.76 sen from 2.44 sen.

Revenue, however, surged 75% to RM3.9bil against RM2.22bil in 2Q24, mainly due to higher selling price for cocoa products.

For the first half, net profit was 10.2% lower at RM142.8mil, while revenue doubled to RM8.19bil from RM4.1bil.

The world’s fourth-largest cocoa grinder noted that cocoa prices remain elevated despite easing from earlier peaks. High prices have spurred farmers to expand planting and improve farm management, resulting in a small surplus this year and potentially larger ones ahead. Supply is therefore expected to improve gradually.

On the demand side, rising costs have triggered consumer pushback, with many cutting consumption or shifting to cheaper alternatives, leading to softer chocolate demand.

“As a result, cocoa prices are expected to stabilise in the near term,” Guan Chong said.