KUALA LUMPUR: Guan Chong Bhd’s net profit jumped 57.2% to RM53.27mil in the first quarter ended March 31, from RM33.9mil a year ago, due to improved margin.

       The world’s fourth-largest cocoa grinder said the higher earnings was mainly due to improved margin, and also contributed by lower production cost achieved through higher production volume in the first quarter.

       Its revenue grew 3.2% to RM990.53mil against RM960.12mil last year, mainly due to an increase in selling price and volume of cocoa solids.

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       Guan Chong declared a first interim dividend of 1.5 sen per share in respect of the financial year ending Dec 31, 2022, with an ex-date on June 17 and payment date on July 12.

       The payout will amount to a dividend payout of RM15.9mil or 29.8% of net profit for 1Q22.

       Managing director and CEO Brandon Tay Hoe Lian said the group faced multiple headwinds in the past two years including the Covid-19 pandemic, global supply chain interruptions and uncertainties from the living income differential policy by the two largest bean producing countries in Africa.

       “Nevertheless, these challenges have only strengthened our resolve to sustain our profitability, improve our operations, and continue engaging our customers. These initiatives provided a strong base for the good 1Q22 performance, just as the chocolate market recovers.

       “With international borders reopened for travel and the pandemic behind us, we expect the demand for cocoa ingredients to grow in tandem with the improved chocolate consumption in developed markets of US and Europe,” he said.

       “Currently, we have even achieved a forward sales of more than 50% of our capacity which are slated for delivery in 2023, a marked turnaround from a similar timeframe last year. The sales order book points to a good year ahead,” Tay said.

       Meanwhile, the first phase of the construction works for GCB’s new cocoa grinding facility in Ivory Coast, Africa is expected to be complete by the third quarter of 2022.

       Upon commissioning, the facility will add 60,000 tonnes of annual grinding capacity to the group, expanding the overall annual grinding capacity to 330,000 tonnes.