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Amid crisis, FTN Cocoa declares loss for second consecutive year

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Just as it did at Full Year 2017, agro allied firm, FTN Cocoa Processors Plc has announced a Loss After Tax for FY2018, this time in the sum of N569.369 million. In percentage terms, the 2018 figure is a 25% decline from what it posted in 2017, which stood at N762.421 million.

This and other details of the company’s Key Performance Indicators are contained in FTN Cocoa’s Reports and Financial Statements for the Year Ended 31st December 2018, published on the website of the Nigerian Stock Exchange Monday.

Revenue soared dramatically, rising by 636% from N81.824 million at FY2017 to N606.106 million at FY2018.

Loss Before Tax was N569.369 million at FY2018 compared to the N762.421 million recorded at the corresponding period of 2017, signalling a 25% drop. The loss position was driven largely by a bloated Cost of Sales figure, which recorded a negative growth from N332.786 million in 2017 to N885.860 million in 2018.

Further fuelling the loss was Finance Cost which stood at N261.183 million in 2018 compared with the N377.922 million posted the year before. Finance cost represent the amount of money a company commits to servicing debt incurred in the process of building or purchasing assets.

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Loss Per Share fell to 26k from 35k, implying that 26% fall was recorded in the process.

The company, a producer of cocoa butter, cocoa cake, cocoa powder and cocoa liquor, has been embroiled in several crises lately. It has not held an Annual General Meeting (AGM) nor declared dividends over two years owing to a severe financial crunch that has not only sent the company bankrupt but impaired its chances of accessing credit, home or abroad.

A report this March had it that the Ibadan-based agro allied firm had its head office foreclosed by a bank while a good number of its workforce resigned on the ground of inability to pay their salaries. According to the company’s financials, its workforce shrank from 129 employees to 111 between 2017 and 2018.
FTN Cocoa Processors Plc currently trades on the floor of the NSE at N0.20 per share. Its Earnings Per Share (EPS) is –N0.31.

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Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

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