Kayode Tokede
Despite hike in revenue, FTN Cocoa Processors Plc has announced a before tax of N273.4 million in 2025 audited financial statement from N10.62 billion loss before tax in 2024, to sustain its poor performance.
In 2021, FTN Cocoa declared N1.48 billion loss before tax and the following year, 2022, the company announced N430.9 million loss before tax. In addition, the company announced N10.65 billion in the 2023 financial year.
The cocoa processing company on the Nigerian Exchange Limited (NGX) worst performance is coming on the backdrop of N6.3billion cost of sales in 2025 from N536.59million reported in 2024.
The key drivers of cost of sales was N5.29 billion expenses on raw materials in 2025 from N130.18 million declared in 2024.
The company explained that it has been producing below capacity of five per cent due to lingering working capital inadequacy, stating that the impact on the gross margin as a result of huge fixed cost that has to be borne
From the result and accounts, the company’s cost of sales was higher than revenue generated, a major factor that contributed to loss before tax reported in the year under review.
In 2025, the company reported N5.65billion revenue, about 310.5 per cent increase over N1.38billion reported in 2024.
The breakdown of revenue revealed that cocoa butter export moved to N3.54billion in 2025, up by 158 per cent from N1.37 billion reported in 2024, while local sales of cocoa powder and butter moved to N2.1 billion in 2025, a significant increase of 63736.2 per cent from N3.3million in 2024.
The company in the year under review posted N24.14 billion total assets, which is 14.4per cent increase over N21.09 billion in 2024.
FTN Cocoa Processors closed 2025 with total liabilities of N23.71 billion, about 34.4 per cent increase over N17.65billion reported in 2024 as total borrowing stood at N23.2 billion in 2025 from N17.15billion in 2024.
The moribund company in 2025 said it obtained a loan of N5,000,000,000 from NEXIM Bank at nine per cent interest rate per annum for 2 years.
“The loan was used for the procurement of cocoa beans and processing into cocoa butter, cocoa cakes and powder for export. The loan was secured with mortgage debentures over fixed and floating assets of FTN Cocoa,” the company explained.