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2.5 lo... next quarter results in May would ve Record... cocoa price increase >50% in March alone.... pure profit
But Q2 or Q3 onwards would be tough... feedstock price increase....
Hopefully big dividend in May/June
FROM US$4,200 per tonne at the start of 2024, cocoa prices saw a dizzying spiral to an all-time high of US$10,080 this month.
For Guan Chong Bhd, the world’s fourth-largest cocoa grinder, the price upswing of over 130% in less than three months – even outpacing the erratic bitcoin – has added more pressure to its already stretched financials.
After all, the cost of cocoa beans accounts for about 80% of its total production cost.
In the financial year ended Dec 31, 2023 (FY23), Guan Chong’s total borrowings jumped by 88% to RM2.2bil, bringing the net gearing level to a high of 1.21 times.
As a result, the finance cost or the interest paid leapt by 150% to RM140.2mil in FY23.
Interestingly, this was before the price of cocoa beans surged by over 130% since January this year.
It is noteworthy that cocoa bean prices have been on an uptrend since early 2023 - $2,500 only
They are going to adjust the ASP due to shortage of chocolate . Margin will start going up , I won’t be surprise to see a breakthrough for the next quarter.
The issue now is shortage of chocolate in the market , but GCB has secure enough supply to supply for the whole FY2024. It’s a very good position now
I foresee coming to break all time high soon. RM 4 let’s go
Agreed... ASP will be adjusted but cannot too much like cocoa price increase - customers cannot accept and pass their cost.
Nevertheless, if chocolate manufacturer has no cocoa, they cannot make their products also.
