JOHOR BAHRU: The world’s fourth largest cocoa grinder Guan Chong Bhd recorded a net profit soaring fivefold to RM253 million on a RM1.8 billion revenue in the second quarter ended June 30, 2026 (Q2’26), compared to RM48.2 million and RM3.89 billion, respectively, in the corresponding quarter last year.
The profit expansion in Q2’26 was anchored by effective management of raw materials purchase and pricing of cocoa ingredients—even as overall revenue adjusted in tandem with lower raw material prices.
Lower finance costs helped in improving the profits in Q2’26 too, declining by 45.4% to RM46.9 million in Q2’26, from RM85.9 million previously, attributed to reduced working capital financing needs for bean procurement in line with lower bean prices. The lower finance costs reflect a 21.6% drop in total borrowings to RM2.5 billion in end Q2’26, from RM3.19 billion as at Dec 31, 2025.
The group’s net gearing has improved, declining to 0.93 times in Q2’26, from 1.35 times as at Dec 31, 2025.
Managing director and CEO Brandon Tay Hoe Lian said: “The strong Q2’26 performance underscores GCB’s ability in tapping opportunities as chocolate makers seek a reliable, steady supplier of cocoa ingredients. Backed by over four decades of industry expertise and a strategic processing footprint in Malaysia, Indonesia, and Ivory Coast, we are well-equipped to meet long-term global ingredient demand at scale.”
In the first half ended June 30, 2026 (1H’26), the group’s revenue declined 46% to RM4.42 billion versus RM8.19 billion in the same period last year, tracing lower global cocoa bean prices. Meanwhile, the group’s net profit in 1H’26 more than doubled to RM376.6 million, in comparison to RM142.8 million previously, attributed to effective management of raw materials purchase and pricing of cocoa ingredients. The group’s better performance for the first half was bolstered by a reduction in finance costs following reduced working capital needs amid the decrease in bean prices.
GCB declared its third interim dividend of 2.5 sen per share in respect of the financial year ending Dec 31, 2026, representing a payout of RM68.5 million. The ex-date for the dividend is scheduled on Sept 10, 2026, with payment date on Sept 25, 2026. In addition to the first and second interim dividends of 1.5 sen per share paid on April 10, 2026 and July 10, 2026, the total dividend payout amounts to RM150.7 million.