KUALA LUMPUR (Nov 26): Guan Chong Bhd’s (KL:GCB) net profit for the third quarter ended Sept 30, 2024 (3QFY2024) rose 68.7% to RM57.17 million from RM33.88 million a year earlier, bolstered by the higher price for cocoa products and increased sales volume for cocoa solids.

Earnings per share increased to 4.87 sen from 2.88 sen, the cocoa manufacturer said in a bourse filing on Tuesday.

Quarterly revenue was up by more than two-fold to RM2.98 billion from RM1.29 billion previously.

The group declared a dividend of one sen, payable on Dec 27.

For the first nine months of FY2024, Guan Chong's net profit jumped to RM216.2 million from RM85.76 million in the same period of last year, as revenue doubled to RM7.07 billion from RM3.55 billion.

Guan Chong said the supply of cocoa beans continues to be limited due to ongoing unfavourable weather conditions and the spread of swollen shoot virus, impacting crops in cocoa-producing nations and resulting in a lower cocoa pod count.

“As a result, we are observing an upward trend in cocoa bean prices,” it noted, adding that the group will continue to observe the market's response to rising bean prices in the short term, although current demand for cocoa remains resilient.

Guan Chong managing director and CEO Brandon Tay Hoe Lian said the cocoa bean supply from Ghana and Ivory Coast, which together represent about 60% of global production, is facing disruptions due to the unfavourable weather and the swollen shoot virus, which adversely affected global grinding operations.

“On a positive note, chocolate demand remains strong, and we have already begun securing orders to be delivered next year,” he added.

Guan Chong’s share price closed down 13 sen or 4.42% at RM2.81, valuing the group at RM3.3 billion. Year to date, the stock has risen 53.55%.