Guan Chong reports lower FY25 profit, maintains cautious outlook

KUALA LUMPUR: Guan Chong Bhd, the world’s fourth-largest cocoa grinder, expects near-term demand for cocoa ingredients to remain moderate but is optimistic of a recovery as declining bean prices support longer-term consumption.

Managing director and CEO Brandon Tay Hoe Lian said lower bean prices are easing working capital pressures and reducing financing needs, while efforts to pare gearing are expected to help lift profit margins.

“Looking ahead, we will strive to navigate ourselves with prudence, focusing on optimal capacity utilisation to maintain stability in our operations and profitability,” he said in a statement.

Guan Chong Bhd’s net profit for the fourth quarter ended Dec 31, 2025 (4Q25) fell to RM43mil, or 1.57 sen per share, from RM213mil, or 7.77 sen, a year earlier, as softer demand weighed on cocoa butter and cocoa powder sales volumes.

Quarterly revenue declined 11% to RM3bil from RM3.37bil previously, in line with lower selling prices tracking current cocoa bean price trends.

For the financial year ended Dec 31, 2025, Guan Chong Bhd’s net profit fell 47.1% to RM227mil from RM429.2mil, while revenue increased 42.9% to RM14.9bil from RM10.4bil a year earlier.

In FY25, the group’s net gearing improved to 1.38 times compared to 1.89 times in the previous financial year, attributed to ongoing efforts to reduce borrowings.

The total borrowings as at end-2025 stood at RM3.25bil, compared to RM4.26bil previously in end-FY25.

Guan Chong has proposed a final dividend of 1.5 sen per share for FY25, subject to shareholders’ approval at its upcoming annual general meeting, amounting to a total payout of RM41.1mil.

“Despite many challenges, we still posted a resilient financial performance in 2025, as we remain disciplined in cost management and prudent operational practices,” Tay said.