Guan Chong profit surges fivefold to US$62.58M in Q2 2026
The cocoa processor reported stronger margins despite lower revenue, while its Ivory Coast expansion and industrial chocolate strategy support its longer-term growth plans.
MALAYSIA – Guan Chong Bhd’s net profit surged more than fivefold to RM253.02 million (US$62.58) in the second quarter ended June 30, 2026, from RM48.20 million (US$11.92M) a year earlier, supported by improved cocoa margins and lower borrowing costs.
In a filing with Bursa Malaysia, the cocoa products manufacturer said the stronger performance was mainly driven by effective management of raw material purchases and cocoa ingredient sales positions, which improved margins and profitability.
“Furthermore, lower borrowing levels during the quarter contributed to a reduction in finance costs,” the company said.
However, quarterly revenue fell to RM1.80 billion (US$445.26M) from RM3.88 billion (US$959.79M) a year earlier, reflecting lower selling prices for cocoa products in line with declining cocoa bean prices.
For the first half of 2026, Guan Chong’s net profit increased to RM376.59 million (US$93.65M) from RM142.80 million (US$35.32M) in the corresponding period last year. Revenue, meanwhile, declined to RM4.42 billion (US$1.09M) from RM8.19 billion (US$2.03M).
The group also strengthened its presence in Ivory Coast following the completion of its acquisition of a 25% stake in Transcao Côte d’Ivoire in April.
“Our presence across Asia and West Africa gives us a distinct competitive edge. As the largest cocoa processor in Asia, we are well-positioned to capitalise on rising regional demand for cocoa ingredients,” said Brandon Tay Hoe Lian, managing director and chief executive officer of Guan Chong.
Looking ahead, the group expects chocolate demand to recover gradually in the second half of 2026, particularly during the fourth quarter of its financial year ending December 31, as easing cocoa inflation and moderating prices improve affordability and support consumer purchases.
“The premiumisation trend in the chocolate industry is also expected to persist, reinforcing longer-term growth ambitions in the premium category,” Guan Chong said.
“Over the longer term, the structural demand outlook remains positive, supported by the ongoing shift towards real chocolate reformulation as manufacturers move away from substitute ingredients,” it added.
Guan Chong said it continues to monitor market developments and implement measures to secure a consistent and reliable supply of cocoa beans. The company is also managing working capital to maintain adequate liquidity and operational resilience.
The group also said it would proactively manage supply chain risks arising from geopolitical developments and potential weather disruptions to global cocoa production linked to the impending El Niño.
“Looking ahead, the group will proactively manage supply chain risks stemming from ongoing geopolitical developments and potential weather disruptions on global cocoa bean production from the impending El Niño,” it said.
Guan Chong declared a third interim dividend of 2.5 sen per share for financial year 2026, amounting to RM68.5 million.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
