Guan Chong Berhad (GCB) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose 131.5% YoY to RM2,976.9m, driven by higher cocoa product selling prices and increased cocoa solids sales volume; quarterly PBT increased to RM71.3m from RM41.6m.

• 9M revenue reached RM7,069.5m and profit for the period was RM216.2m, versus RM3,548.6m and RM85.8m in 9M 2023.

Financial highlights

• Q3 operating profit was RM144.9m versus RM77.0m; finance costs rose to RM74.2m from RM35.3m.

• 9M operating profit was RM455.4m versus RM200.4m; finance costs increased to RM194.8m from RM93.3m.

• Q3 profit was RM57.2m versus RM33.9m; 9M profit was RM216.2m versus RM85.8m.

• 9M operating cash flow was negative RM1,534.7m, with net cash used in operations of RM1,338.1m after working-capital changes.

Outlook and guidance

• Cocoa bean supply constraints and rising prices remain; demand is resilient, while near-term market response to higher bean prices is being monitored.

• Higher bean costs can be passed on to customers; priorities include protecting margins, securing bean supply, managing working capital and matching production to market conditions.

• Focus remains on cocoa ingredient processing, with expansion into higher-margin industrial chocolate and production optimization.