By Dickson Pat
One of Nigeria’s surviving cocoa processors, FTN Cocoa Processor Plc, is battling losses of over N9.5bn despite posting its first revenue since 2023. The company’s cash assets have also dried up.
FTN Cocoa started as Fantastic Abiola Nigeria Limited with activities including processing of Cocoa Beans and Palm Kernel into Cocoa Cake, Liquor, Butter, Powder, Palm Kernel Oil and Palm Kernel Cake. But the company has, over the past three years, struggled with its operations.
In 2023, the company declared zero revenue and N10.8bn loss after tax, blaming harsh economic conditions like interest rates and foreign exchange setbacks.
Analysis of the firm’s financial statement for 2024 showed that the company grew its revenue by 100% from zero to N1.37bn but sustained a huge loss.
In 2024, the firm posted a loss after tax amounting to N9.5bn, which is an improvement compared to N10.6bn loss after tax declared in 2023.
FTN Cocoa’s loss is driven by exchange loss of N11.7bn in 2024. In 2023, the firm recorded foreign exchange losses of N10.17bn driven by an introduction of a managed float by the Central Bank of Nigeria ,CBN.
FTN Cocoa admitted it is exposed to likely losses arising from market risk.
“Such risks comprise fluctuations in interest rates, equity prices and rate of exchange of foreign currencies and default in collection of receivables”, the books said.
Amidst the loss, the company saw its assets grow by 37.1% from N13.2bn in 2023 to N21bn in 2024.
However, its liability rose from N9.9bn in 2023 to N17.1bn in 2024 due to a surge in borrowing.
The company increased its borrowings by N7.7bn, from N9.3bn in 2023 to N17.15bn in 2024.
The processor is also low on cash assets with N76.39m cash held in December 2024, down from N874.8m cash as of December 2023.
