PETALING JAYA: The lower selling prices of cocoa products resulted in Guan Chong Bhd

posting a revenue of RM2.62bil for the first quarter ended March 31, 2026 (1QFY26), compared to RM4.3bil in the same quarter a year ago.

In a filing with the local bourse, the cocoa product manufacturer's profit was higher at RM123.57mil versus RM94.59mil in 1QFY25.

Guan Chong said this was mainly on the back of lower finance costs arising from lower borrowings during the current quarter.

The group declared a second interim single-tier dividend of 1.5 sen per ordinary share, payable on July 10.

Moving forward, the group said cocoa prices are expected to remain relatively stable following the significant correction from last year's highs, supported by improved supply from better weather in the current crop and maturing plantings in key producing regions.

“Demand is expected to recover in the second half of 2026, particularly in the fourth quarter, as declining cocoa prices translate into lower chocolate prices, making products more accessible and encouraging consumers to resume or increase purchases,” Guan Chong said.

It cautioned that uncertainty arising from the Middle East conflict could weigh on regional demand and broader consumer sentiment in the near term.

Furthermore, the anticipated El Niño weather condition is expected to tighten cocoa supply in the upcoming crop cycle.

“We will continue to closely monitor market developments and implement proactive measures to secure a consistent and reliable supply of cocoa beans, ensuring operational continuity and resilience, while carefully managing working capital to maintain adequate liquidity.

"Looking ahead, we remain committed to its core cocoa ingredient processing business while strategically expanding into the industrial chocolate segment and optimising production in line with evolving market conditions,” it stated.