Malaysian cocoa grinder Guan Chong Bhd recorded RM28.13 million web revenue within the second quarter ended 30 June 2023 (2Q23), a 37% lower from RM44.61 million in the identical quarter final yr because of greater finance price from elevated rates of interest and weaker ringgit.
Income was RM1.16 billion versus RM1.20 billion beforehand, decrease by 3.1% because of decreased gross sales quantity of cocoa butter and cocoa powder.
Nevertheless, it stated that the income decline was mitigated by greater common promoting value of commercial sweets as income from its German subsidiary rose by 20.9% to RM605.17 million, from RM500.73 million beforehand.
The corporate plans to handle its monetary commitments whereas sustaining a balanced method to growth.
In 1H23, their income elevated by 3.4%, whereas web revenue decreased by 47% because of decrease grinding margins and better finance prices.
In a separate assertion, the corporate stated it’s set to increase its European market share with the completion of a brand new facility within the UK.
The lately commissioned UK facility will increase the corporate’s annual industrial chocolate capability by 16% or 16,000 metric tonnes, reaching 116,000 metric tonnes. The situation close to the port of Felixstowe permits for environment friendly distribution to European chocolate makers.
Along with their current capability in Germany, Guan Chong goals to faucet into Europe’s rising industrial chocolate demand.
“This new facility within the UK will additional cement our presence within the industrial chocolate market in Europe, integrating GCB’s important function within the world chocolate provide chain. Europe stays the world’s largest chocolate consumption area, and therefore we’re optimistic of our enterprise” stated its MD and CEO Brandon Tay Hoe Lian.
Regardless of challenges akin to greater cocoa bean costs, the corporate stays optimistic about its enterprise within the European market. –TMR