KUALA LUMPUR (Aug 22): Guan Chong Bhd (GCB) reported Wednesday it posted near-flat results for the second quarter of this year, compared to similar period in the last financial year.
The company, in its filings to the local stock exchange, reported a net profit of RM35.30 million for the current review quarter compared to RM34.45 million in previous year. Revenue was RM312.84 million compared with RM334.64 million.
In a press statement, the company said the 2.5% increase in profit was achieved despite “cautious consumer sentiment in developed economies, decreased average selling prices of cocoa ingredients, and the group’s higher finance costs during the quarter under review.”
The company declared an interim dividend of 2.5 sen per share.
The large cocoa processing company said it expects to do better in the second half of 2012 “since our second line in Batam added 15,000 MT only in late June to give us an overall production capacity of 50,000 MT per quarter. This is expected to allow GCB to maintain, if not better our FY12 financial performance when compared to FY11.”
GCB added in the statement that it will proceed with its bonus issue of one new ordinary share for two existing ordinary shares, which was proposed together with the now-aborted exercise to undertake secondary listing on Singapore’s stock exchange.
The bonus issue will entail an issuance of up to 159.9 million new ordinary shares of RM0.25 par. The entitlement date is on Spet 11 and the bonus shares will be listed on Bursa Malaysia the following day.