KUALA LUMPUR: Guan Chong Bhd’s net profit rose to RM72.17 mil for the first quarter ended March 31, 2020 (1Q20) from RM53.14 mil in the same period last year.
Revenue also increased to RM909.38 mil from RM648.07 mil previously.
In a filing with Bursa Malaysia, Guan Chong attributed its performance to higher selling price of cocoa products, as well as revenue contributed by its new subsidiary, Schokinag Holding GmbH.
Moving forward, the group expects the business environment for the 2020 financial year ending Dec 31, 2020 to be challenging due to the uncertain impact from the implementation of the Living Income Differential and the Covid-19 pandemic, which caused slight disruptions and interruption in logistic and supply chains.
“Lockdowns implemented worldwide have resulted in economic slowdowns and subsequently shrunk chocolate consumption.
“Hence, we expect some delay in shipment to customers and reduction in utilisation of grinding capacity in near future,” it added. – May 29, 2020, Bernama
