FTN Cocoa post 10th straight year of losses in 2025

2026-04-04 11:30:48

FTN Cocoa Processors Plc has released its audited 2025 financial results for the year ended December 31, 2025, reporting pre-tax loss of N252.65 million.

This marks the 10th straight year loss, although it is an improvement compared to the N9.5 billion loss in 2024

Also, the report reveals a significant growth in revenue, as revenue surged by 310%, reaching N5.65 billion, up from N1.38 billion in the previous year.

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Despite this impressive growth, high direct costs, particularly driven by raw material expenses, exceeded revenue and contributed significantly to the company’s losses in 2025.

Key Highlights (2025 vs 2024)

Revenue: N5.65 billion, up 310% YoY

Cost of sales: N6.33 billion, up from N536.6 million

Gross (loss): N685.92 million, compared to a gross profit of N839.2 million

Selling and distribution cost: N28.8 million, up from N17.4 million

Operating expenses: N847.9 million, up from N409.6 million

Exchange gain: N1.844 billion, compared to N11.675 billion loss

Operating profit/loss: N304.72 million, compared to a loss of N10.31 billion in 2024

Loss after tax: N252 million, down from the N9.5 billion loss in 2024

Loss per share: N0.06, down from the loss of N2.44

Driving the loss

FTN Cocoa recorded impressive revenue growth, but it was not enough to cover the cost of generating that revenue due to the high cost of raw materials.

The revenue growth was driven by a sharp increase in cocoa product exports, including cocoa butter, cake, and liquor, while local sales of cocoa powder and palm kernel oil also contributed to overall income.

However, the cost of raw materials surged to N5.27 billion from just N131 million in 2024, pushing the cost of sales to N6.33 billion; about 12% higher than revenue, resulting in a gross loss of N686 million.

Despite this, FTN Cocoa achieved operating profit of N284.45 million, buoyed by an exchange gain of N1.8 billion, compared to an exchange loss of N10.6 billion in 2024.

The absence of the exchange loss in 2025, unlike in 2024, was a key factor in reducing the loss before tax.

Balance sheet

Total assets have increased to N22.14 billion in 2025 from N21.09 billion in 2024, reflecting a slight growth of about 5%, driven by property, plant, equipment, and plantation development.

However, this expansion has been accompanied by a sharp rise in liabilities, which climbed to N21.61 billion, largely due to borrowings, which stood at N21.1 billion in 2025.

Equity weakened during the period, declining to N543 million from N3.44 billion in 2024 as accumulated losses eroded retained earnings, now in a deficit position of N26.83 billion.

Also, the decline in Capital Reserve (Hybrid Capital) by N2.4 billion, from N12.54 billion in 2024 to N10.14 billion in 2025 equally contributed to the decline in equity.

Market reaction:

On Thursday, April 2, 2026, the stock closed at N5.33 per share on the NGX, depicting a YtD gain of 6.6%

FTN Cocoa is currently the 91st most capitalized stock on the NGX, at a market capitalization of N20.8 billion.

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