Guan Chong's net profit soars to RM253.02mil in Q2

KUALA LUMPUR: Guan Chong Bhd reported a staggering fivefold increase in net profit to RM253.02 million in Q2 ending June 30, 2026, compared to RM48.20 million in the same period last year. The company attributed this impressive performance to effective management of raw material purchases and cocoa ingredient sales, which boosted margins and profitability.

Additionally, lower borrowing levels during the quarter helped reduce finance costs. However, revenue for the quarter dropped to RM1.80 billion from RM3.88 billion previously due to a lower selling price for cocoa products, reflecting the ongoing cocoa price decline. For the first half of 2026, Guan Chong Bhd posted a net profit of RM376.59 million, up from RM142.80 million, while revenue fell to RM4.42 billion from RM8.19 billion over the same period last year.

The chocolate market is anticipated to bounce back gradually in the second half of 2026, especially in the final quarter, as easing cocoa inflation and moderating prices make the products more affordable, encouraging consumers to buy more. The group also expects the premiumisation trend in the chocolate industry to continue, supporting long-term growth prospects in the premium segment.

Looking ahead, the structural demand outlook for the company remains positive, driven by the ongoing shift towards real chocolate reformulation as manufacturers transition away from substitute ingredients. Guan Chong Bhd remains vigilant, closely monitoring market developments and proactively managing risks to maintain a stable and reliable supply of cocoa beans, ensuring operational continuity and resilience.

The company is committed to its core cocoa ingredient processing business while strategically expanding into the industrial chocolate segment, optimizing production to adapt to changing market conditions.