KUALA LUMPUR (Feb 26): Guan Chong Bhd (KL:GCB) has declared a special dividend after its fourth quarter net profit surged by more than 14 times, driven by higher selling prices for cocoa products.

The world’s fourth-largest cocoa grinder announced a special dividend of 1.5 sen per share, on top of a proposed final dividend of 1.5 sen per share for the year ended Dec 31, 2024 (FY2024). If approved, this would bring its total dividend for FY2024 to four sen per share, up from two sen in FY2023.

The last time the group declared a special dividend, totalling two sen per share, was in FY2018.

Guan Chong posted a record high quarterly net profit of RM212.98 million for 4QFY2024, compared with RM15.17 million a year earlier, according to the group's filing on Wednesday. Earnings per share jumped to 18.13 sen from 1.29 sen.

Revenue for the quarter increased 90.2% year-on-year to a record RM3.37 billion from RM1.77 billion previously, thanks to higher cocoa product prices amid supply constraints from the adverse weather conditions.

For the full year, Guan Chong’s net profit more than quadrupled to a record high of RM429.18 million, compared with RM100.93 million in FY2023. Full-year revenue climbed 96.3% to also hit a record high of RM10.44 billion from RM5.32 billion.

Looking ahead, the group expects cocoa prices to remain high due to supply constraints, but it remains confident that the demand for chocolate products will stay resilient.

"The group is able to pass on the higher cost of cocoa beans to customers and will continue to focus on maintaining and enhancing product margins,” it said.

Shares of Guan Chong closed up 15 sen or 3.88% to RM4.02 on Wednesday, valuing the group at RM4.72 billion.