FTN Cocoa Processors’ N6.33bn Cost Of Sales Exceeds Revenue

FTN Cocoa Processors Plc recorded a gross lack of N685.92m within the 2025 monetary yr as its value of gross sales of N6.33bn exceeded income of N5.65bn, underscoring the price pressures confronting the cocoa processing firm regardless of a considerable improve in turnover.

The firm’s monetary statements for the yr ended December 31, 2025, confirmed that income rose to N5.65bn from N1.38bn in 2024, representing a rise of roughly 309.5 per cent.

However, the expansion in income was accompanied by a pointy improve in manufacturing prices, with value of gross sales rising to N6.33bn from N536.59m within the previous yr.

Consequently, the corporate recorded a gross lack of N685.92m, reversing the gross revenue of N839.22m reported in 2024.

The figures point out that the corporate’s value of gross sales exceeded its income by roughly 12.1 per cent, leaving it unable to generate a optimistic gross margin from its core enterprise operations through the interval.

The strain on its working efficiency was additional mirrored in promoting and distribution bills, which elevated to N116.58m from N17.42m within the earlier yr.

Operating bills additionally rose to N847.92m from N409.56m, whereas the corporate recorded an impairment lack of N14.09m through the yr.

Despite these pressures, FTN Cocoa Processors benefited from international alternate actions, recording an alternate achieve of N1.84bn in 2025, in contrast with an alternate lack of N11.68bn in 2024.

The international alternate achieve, alongside different working revenue of N124.89m, helped the corporate submit an working revenue of N304.72m, reversing the working lack of N10.31bn recorded within the previous yr.

Nevertheless, finance prices of N578.12m weighed on its backside line, exceeding the working revenue generated through the interval.

Consequently, the corporate recorded a loss earlier than taxation of N273.40m in 2025, in contrast with N10.62bn in 2024.

The newest outcome represents a major discount within the magnitude of its losses, though the corporate remained in detrimental territory regardless of the substantial enchancment in income and the beneficial international alternate place.

The firm reported a loss after taxation of N273.40m, which was transferred to its income reserve.

This in contrast with a loss after taxation of N9.53bn within the earlier monetary yr.

Its loss per share additionally narrowed to N0.07 from N2.44 in 2024, reflecting the development in its general monetary efficiency regardless of the return to a gross loss.

A evaluation of the stability sheet, nevertheless, confirmed that the corporate continued to face vital monetary pressures, with complete liabilities rising to N23.71bn as of December 31, 2025, from N17.65bn a yr earlier.

Non-current liabilities, comprising borrowings, elevated to N23.21bn from N17.15bn, whereas present liabilities rose to N501.34m from N496.65m.

The improve in borrowings factors to a rising long-term monetary obligation, which might constrain the corporate’s capability to fund operations and meet different monetary commitments if working money technology stays weak.

On the asset facet, complete belongings elevated to N24.14bn in 2025 from N21.09bn in 2024.

Non-current belongings, together with property, plant and tools, declined to N16.62bn from N17.36bn, whereas present belongings elevated to N7.52bn from N3.73bn.

For FTN Cocoa Processors, the 2025 outcomes spotlight a pointy restoration in income and a considerable discount in annual losses, however the gross loss, rising borrowings and detrimental shareholders’ fairness stay vital issues.

The firm’s potential to enhance manufacturing effectivity, management working prices and translate larger gross sales into sustainable gross earnings can be important to restoring profitability and strengthening its monetary place.