Guan Chong Bhd's (GCB) net profit increased 53 per cent to RM30 million in the first quarter ended March 2011 from RM19.7 million in the same period last year.

GCB, one of the largest cocoa processors in the region, said the higher profits were largely attributed to the eight per cent increased sales.

Its revenue was RM21 million or eight per cent better at RM290 million during the quarter, from the RM269 million achieved in the same period last year.

In a statement today, GCB said the revenue growth was spurred by a 37.3 per cent increase in sales tonnage to 22,939 metric tonnes, as well as better selling prices of its cocoa ingredients.

'Our production facility at Pasir Gudang was working at maximum capacity utilisation to meet our clients' orders from the beginning of the year,' said GCB's managing director and chief executive officer, Brandon Tay Hoe Lian.

'As we mainly export our products, the continued strong demand from our overseas clientele only reflects that our cocoa ingredients are of high quality and accepted by world-renowned chocolate producers,' he added.

Typically, GCB exports its cocoa ingredients to mainly the United States and Europe. Export sales constituted 92 per cent of group revenue in the financial year 2010.

On the group's prospects, Tay said GCB continues to enjoy a full order book for its Pasir Gudang plant for this year, while at the same time, the increased customer orders will be met by the new factory in Batam, Indonesia.

The plant was commissioned in February 2011.

Tay said GCB's profitability is also expected to improve as a result of the zero tariff cocoa beans sourced in Indonesia for its Batam plant.

The plant was set up in mid-2010 in reaction to the Indonesian government imposing an export tax on cocoa beans of up to 15 per cent last year.

GCB also proposed a final tax-exempt single-tier dividend of three sen per ordinary share in respect of financial year 2010, amounting to a payout of about RM9.6 million.

The dividend is subject to shareholders' approval at the forthcoming annual general meeting next month. - Bernama