Guan Chong Berhad Full Year 2023 Earnings: Revenues Beat Expectations, EPS Lags

Guan Chong Berhad (KLSE:GCB) Full Year 2023 Results

Key Financial Results

• Revenue: RM5.32b (up 20% from FY 2022).
• Net income: RM100.9m (down 32% from FY 2022).
• Profit margin: 1.9% (down from 3.3% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: RM0.086 (down from RM0.14 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Guan Chong Berhad Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 13%. Earnings per share (EPS) missed analyst estimates by 27%.

The primary driver behind last 12 months revenue was the Singapore segment contributing a total revenue of RM5.92b (111% of total revenue). Notably, cost of sales worth RM4.79b amounted to 90% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling RM234.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how GCB's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Food industry in Malaysia.

Performance of the Malaysian Food industry.

The company's shares are up 9.0% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 3 warning signs for Guan Chong Berhad you should be aware of, and 2 of them don't sit too well with us.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.