Guan Chong plans RM50mil capex for German plant


KUALA LUMPUR: Guan Chong Bhd has introduced plans to speculate RM50mil in capital expenditure over the following two years in its German plant Schokinag Holding GmbH.

It mentioned the funding will go in the direction of capability expansions for the Mannheim-based plant because it goals to trip the restoration in Europe in as borders reopen.

This comes because the group posted a web revenue of RM34.46mil in Q3FY21, which represents a 26.35% decline from RM46.78mil within the earlier corresponding quarter as larger freights prices and decrease margins put strain on its bottomline.

Earnings per share was 3.32 sen in comparison with 4.61 sen in 3Q20.

The group declared a dividend of 1 sen per share, bringing year-to-date payout to 2 sen per share.

Group income elevated 18.6% to RM998.1mil from RM841.6mil in 3Q20, underpinned by contributions from Schokinag and higher total gross sales tonnage.

Over the 9 months interval to Sept 30, Schokinag stood out with income progress of 21%, outpacing all the group’s 6.5% progress over the identical interval.

“The higher efficiency in Schokinag, even with out new capability put in, just isn’t solely a very good indication of financial restoration within the European area but in addition a mirrored image of our German workforce in rising our market share in industrial chocolate in Europe.

“Therefore, we imagine the choice to develop Schokinag’s capability is important to assist the workforce of their progress ambition, and we are going to proceed to judge different enlargement choices the place wanted to seize the continuing alternatives,” mentioned Guan Chong managing director and CEO Brandon Tay Hoe Lian in a Monday assertion.

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