Cocoaland's 1Q net profit soars 85% as revenue improves on stronger demand

KUALA LUMPUR (May 31): Snack and candy maker Cocoaland Holdings Bhd reported an 85.39% jump in its net profit for the first quarter ended March 31, 2022 (1QFY22) to RM10.54 million from RM5.69 million a year earlier, despite rising raw material prices, fuel costs and freight charges, as revenue rose on stronger demand for its gummies, both under its house brand and its contract manufacturing business.

The group's revenue for 1QFY22 rose 21.48% to RM65.74 million from RM54.12 million. The rise in revenue was also contributed by higher demand for snacks in Saudi Arabia, its bourse filing showed.

Earnings per share for 1QFY22 jumped to 2.35 sen from 1.26 sen. No dividend was declared.

Compared with the immediate preceding quarter of 4QFY21, net profit rose 19.27% from RM8.84 million, as revenue climbed 4.88% from RM62.69 million.

Moving forward, Cocoaland said it is cautiously optimistic that its revenue will gradually return to pre-pandemic level.

"The group will continue to monitor the development of the Covid-19 pandemic, impact of the implementation of the RM1,500 minimum wage starting May 1, 2022 as well as geopolitical tension and will take the necessary measures to mitigate against any potential impact on the financial position and operating results of the group," it said.

Shares in Cocoaland closed one sen or 0.85% higher at RM1.19 on Tuesday, valuing the candy manufacturer at RM544.54 million.