FTN Cocoa Processors Plc recorded a gross loss of N685.92m in the 2025 financial year as its cost of sales of N6.33bn exceeded revenue of N5.65bn, underscoring the cost pressures confronting the cocoa processing company despite a substantial increase in turnover.
The company’s financial statements for the year ended December 31, 2025, showed that revenue rose to N5.65bn from N1.38bn in 2024, representing an increase of approximately 309.5 per cent.
However, the growth in revenue was accompanied by a sharp increase in production costs, with cost of sales rising to N6.33bn from N536.59m in the preceding year.
Consequently, the company recorded a gross loss of N685.92m, reversing the gross profit of N839.22m reported in 2024.
The figures indicate that the company’s cost of sales exceeded its revenue by approximately 12.1 per cent, leaving it unable to generate a positive gross margin from its core business operations during the period.
The pressure on its operating performance was further reflected in selling and distribution expenses, which increased to N116.58m from N17.42m in the previous year.
Operating expenses also rose to N847.92m from N409.56m, while the company recorded an impairment loss of N14.09m during the year.
Despite these pressures, FTN Cocoa Processors benefited from foreign exchange movements, recording an exchange gain of N1.84bn in 2025, compared with an exchange loss of N11.68bn in 2024.
The foreign exchange gain, alongside other operating income of N124.89m, helped the company post an operating profit of N304.72m, reversing the operating loss of N10.31bn recorded in the preceding year.
Nevertheless, finance costs of N578.12m weighed on its bottom line, exceeding the operating profit generated during the period.
Consequently, the company recorded a loss before taxation of N273.40m in 2025, compared with N10.62bn in 2024.
The latest result represents a significant reduction in the magnitude of its losses, although the company remained in negative territory despite the substantial improvement in revenue and the favourable foreign exchange position.
The company reported a loss after taxation of N273.40m, which was transferred to its revenue reserve.
This compared with a loss after taxation of N9.53bn in the previous financial year.
Its loss per share also narrowed to N0.07 from N2.44 in 2024, reflecting the improvement in its overall financial performance despite the return to a gross loss.
A review of the balance sheet, however, showed that the company continued to face significant financial pressures, with total liabilities rising to N23.71bn as of December 31, 2025, from N17.65bn a year earlier.
Non-current liabilities, comprising borrowings, increased to N23.21bn from N17.15bn, while current liabilities rose to N501.34m from N496.65m.
The increase in borrowings points to a growing long-term financial obligation, which could constrain the company’s capacity to fund operations and meet other financial commitments if operating cash generation remains weak.
On the asset side, total assets increased to N24.14bn in 2025 from N21.09bn in 2024.
Non-current assets, including property, plant and equipment, declined to N16.62bn from N17.36bn, while current assets increased to N7.52bn from N3.73bn.
For FTN Cocoa Processors, the 2025 results highlight a sharp recovery in revenue and a substantial reduction in annual losses, but the gross loss, rising borrowings and negative shareholders’ equity remain significant concerns.
The company’s ability to improve production efficiency, control operating costs and translate higher sales into sustainable gross profits will be critical to restoring profitability and strengthening its financial position.
