FTN Cocoa Processors Plc has released its 2025 financial statements, recording a sharp increase in revenue for the year ended December 31, 2025, with sales rising 310.5% to N5.65 billion from N1.38 billion in 2024.
However, the stronger top line did not translate into a return to profitability, as the company reported a loss before tax of N273.40 million, although this was significantly lower than the N10.62 billion loss recorded in the previous year.
The results show that high production costs, low factory utilisation and finance expenses continued to weigh profitability, while a foreign exchange gain helped cushion the overall loss.
Key Highlights
- Revenue: N5.65 billion (Up 310.5% YoY from N1.38 billion)
- Gross profit: Gross loss of N685.92 million, compared with a gross profit of N839.22 million in 2024.
- Operating profit: N304.72 million, compared with an operating loss of N10.31 billion in 2024.
- Pre-tax profit: Loss of N273.40 million, compared with a loss of N10.62 billion in 2024.
- Profit after tax: Loss of N273.40 million, compared with a loss of N9.53 billion in 2024.
- Earnings per share: Loss per share of N0.07, compared with a loss per share of N2.44 in 2024.
Driving the numbers
The main highlight of FTN Cocoa’s 2025 results was the sharp increase in revenue, which rose by approximately N4.27 billion year-on-year.
Export sales of cocoa butter contributed N3.54 billion, while local sales generated N2.10 billion, largely from cocoa powder, which accounted for N2.10 billion.
- The company also recorded N2.08 million in local cocoa butter sales. This represented a significant change from 2024, when export cocoa butter sales accounted for almost all reported revenue and local sales were minimal.
- Despite the improvement in sales, the company’s cost structure remained a major constraint. Cost of sales rose to N6.33 billion from N536.59 million in 2024, exceeding revenue and resulting in a gross loss of N685.92 million.
- The financial statements attribute the pressure on gross margin partly to low production capacity utilisation, with the company producing below 5% of capacity because of persistent working capital constraints. This left the business carrying substantial fixed production costs against a relatively low level of output.
- The weak gross margin meant that the company could not generate enough profit from its core operations to cover other expenses. Selling and distribution costs rose to N116.58 million from N17.42 million, while operating expenses increased to N847.92 million from N409.56 million.
However, other operating income and, particularly, a foreign exchange gain helped improve the reported operating result.
FTN Cocoa recorded a foreign exchange gain of N1.84 billion in 2025, compared with a foreign exchange loss of N11.68 billion in the previous year. This swing was a major contributor to the improvement in operating performance, helping the company move from an operating loss of N10.31 billion to an operating profit of N304.72 million.
The improvement should therefore be viewed in context: the company remained loss-making before tax, and the reported turnaround was substantially supported by exchange-rate movements rather than a positive gross margin.
- Finance costs also increased to N578.12 million from N307.22 million, further reducing the benefit of the operating improvement. The company reported interest expenses on borrowings and its corporate bond, reflecting the cost of financing its operations. As a result, the operating profit was not sufficient to deliver a positive pre-tax result.
- The balance sheet shows the pressure associated with funding the business. Total assets increased to N24.14 billion, while total liabilities rose to N23.71 billion. Borrowings accounted for N23.21 billion of liabilities, including a N5 billion loan obtained from the Nigerian Export-Import Bank at an annual interest rate of 9%.
- According to the financial statements, this loan was used to procure cocoa beans for processing into cocoa butter, cocoa cake and cocoa powder for export.
- The company’s cash position improved to N622.21 million from N76.39 million, including a N500 million short-term deposit. However, operating activities consumed N3.85 billion in cash during the year, compared with an outflow of N2.28 billion in 2024. The cash outflow was driven in part by an increase in receivables and inventories, highlighting the amount of funding tied up in working capital.
Equity declined sharply to N421.78 million from N3.44 billion, reflecting the accumulated impact of losses and adjustments recorded during the year. The company also reported a restatement of previously overbooked export sales and adjustments relating to convertible financing in its statement of changes in equity.
These movements further underline the importance of restoring consistent operating profitability and strengthening the balance sheet.
Balance Sheet
On the balance sheet, total assets rose by 14.4% to N24.14 billion from N21.09 billion in 2024, while total borrowings reached N23.21 billion, up 35.3% from N17.15 billion in 2024.
Total liabilities rose to N23.71 billion, up 34.4% from N17.65 billion in 2024, with cash and cash equivalents rising to N622.21 million from N76.39 million in 2024.
Total equity fell significantly by 87.8% from N3.44 billion in 2024 to N421.78 million.
Market reaction
The share price closed at N7.55 on Monday, October 12, 2026, marking a 32.22% YoY increase from N5.71.