Guan Chong 2Q net profit up 18.8% to RM34.4m

KUALA LUMPUR: GUAN CHONG BHD []’s net profit rose 18.8% to RM34.45 million in the second quarter ended June 30, 2011 from RM19.51 million a year ago, boosted by higher cocoa products sales and foreign exchange (forex) gains.

It said on Thursday, Aug 11 its revenue rose 23.5% to RM334.64 million from RM270.78 million. Earnings per share were 10.84 sen versus 6.10 sen. It declared dividend of three sen per share.

“The increase of 23.58% in turnover is mainly due to higher sales volume of cocoa products as the result of a full-quarter contribution from its Batam plant, which commenced operation in February this year,” it said.

Guan Chong said the profit before tax for the quarter ended June 30, 2011 increased substantially to RM 40.24 million mainly due to higher revenue generated in current quarter, net gains arising from foreign exchange due to appreciation of the ringgit and net fair value gains on forex derivatives..

It also improved from the first quarter, with pre-tax profit at RM 40.24 million from RM 33.79 million in the preceding quarter, boosted by substantially by a full-quarter contribution from its new cocoa processing plant in Batam, which started in February.

For the first half, earnings rose 64.4% to RM64.53 million from RM39.24 million while revenue increased by 15.7% to RM624.64 million from RM539.73 million.