Guan Chong Berhad (GCB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was RM2,621.3m, down 39.1% YoY, mainly from lower cocoa product selling prices; profit before tax rose to RM150.9m from RM118.1m.

• Net profit increased to RM123.6m from RM94.6m, while total comprehensive income was RM102.8m versus RM99.2m, reflecting currency translation and other comprehensive losses.

Financial highlights

• Operating profit was RM213.7m versus RM212.8m YoY; finance costs declined to RM62.9m from RM95.5m, supporting higher profit before tax.

• Tax expense was RM27.3m versus RM23.5m; profit for the period was RM123.6m versus RM94.6m.

• Net cash from operating activities was RM437.2m versus an outflow of RM218.2m; cash generated from operations was RM497.7m versus an outflow of RM117.4m.

Outlook and guidance

• Cocoa prices are expected to remain relatively stable after last year’s significant correction, supported by improved supply from better weather and maturing plantings.

• Demand is expected to recover in H2 2026, particularly Q4, as lower cocoa prices translate into more accessible chocolate prices.

• Focus remains on core cocoa ingredient processing, expansion into industrial chocolate, production optimisation, reliable cocoa bean supply and careful working-capital management.