FTN Cocoa Processors Plc has launched its 2025 monetary statements, recording a pointy improve in revenue for the 12 months ended December 31, 2025, with gross sales rising 310.5% to N5.65 billion from N1.38 billion in 2024.
However, the stronger prime line didn’t translate right into a return to profitability, as the corporate reported a loss earlier than tax of N273.40 million, though this was considerably decrease than the N10.62 billion loss recorded in the earlier 12 months.
The outcomes present that high production costs, low manufacturing unit utilisation and finance bills continued to weigh profitability, whereas a international change achieve helped cushion the general loss.
Key Highlights
- Revenue: N5.65 billion (Up 310.5% YoY from N1.38 billion)
- Gross revenue: Gross lack of N685.92 million, in contrast with a gross revenue of N839.22 million in 2024.
- Operating revenue: N304.72 million, in contrast with an working lack of N10.31 billion in 2024.
- Pre-tax revenue: Loss of N273.40 million, in contrast with a lack of N10.62 billion in 2024.
- Profit after tax: Loss of N273.40 million, in contrast with a lack of N9.53 billion in 2024.
- Earnings per share: Loss per share of N0.07, in contrast with a loss per share of N2.44 in 2024.
Driving the numbers
The primary spotlight of FTN Cocoa’s 2025 outcomes was the sharp improve in revenue, which rose by roughly N4.27 billion year-on-year.
Export gross sales of cocoa butter contributed N3.54 billion, whereas native gross sales generated N2.10 billion, largely from cocoa powder, which accounted for N2.10 billion.
- The firm additionally recorded N2.08 million in native cocoa butter gross sales. This represented a big change from 2024, when export cocoa butter gross sales accounted for nearly all reported revenue and native gross sales had been minimal.
- Despite the advance in gross sales, the corporate’s value construction remained a significant constraint. Cost of gross sales rose to N6.33 billion from N536.59 million in 2024, exceeding revenue and ensuing in a gross lack of N685.92 million.
- The monetary statements attribute the strain on gross margin partly to low production capability utilisation, with the corporate producing beneath 5% of capability due to persistent working capital constraints. This left the enterprise carrying substantial mounted production costs in opposition to a comparatively low stage of output.
- The weak gross margin meant that the corporate couldn’t generate sufficient revenue from its core operations to cowl different bills. Selling and distribution costs rose to N116.58 million from N17.42 million, whereas working bills elevated to N847.92 million from N409.56 million.
However, different working earnings and, significantly, a international change achieve helped enhance the reported working consequence.
FTN Cocoa recorded a international change achieve of N1.84 billion in 2025, in contrast with a international change lack of N11.68 billion in the earlier 12 months. This swing was a significant contributor to the advance in working efficiency, serving to the corporate transfer from an working lack of N10.31 billion to an working revenue of N304.72 million.
The enchancment ought to subsequently be seen in context: the corporate remained loss-making earlier than tax, and the reported turnaround was considerably supported by exchange-rate actions moderately than a constructive gross margin.
- Finance costs additionally elevated to N578.12 million from N307.22 million, additional decreasing the advantage of the working enchancment. The firm reported curiosity bills on borrowings and its company bond, reflecting the price of financing its operations. As a consequence, the working revenue was not ample to ship a constructive pre-tax consequence.
- The steadiness sheet reveals the strain related to funding the enterprise. Total belongings elevated to N24.14 billion, whereas whole liabilities rose to N23.71 billion. Borrowings accounted for N23.21 billion of liabilities, together with a N5 billion mortgage obtained from the Nigerian Export-Import Bank at an annual rate of interest of 9%.
- According to the monetary statements, this mortgage was used to procure cocoa beans for processing into cocoa butter, cocoa cake and cocoa powder for export.
- The firm’s money place improved to N622.21 million from N76.39 million, together with a N500 million short-term deposit. However, working actions consumed N3.85 billion in money in the course of the 12 months, in contrast with an outflow of N2.28 billion in 2024. The money outflow was pushed in half by a rise in receivables and inventories, highlighting the quantity of funding tied up in working capital.
Equity declined sharply to N421.78 million from N3.44 billion, reflecting the amassed influence of losses and changes recorded in the course of the 12 months. The firm additionally reported a restatement of beforehand overbooked export gross sales and changes relating to convertible financing in its assertion of modifications in fairness.
These actions additional underline the significance of restoring constant working profitability and strengthening the steadiness sheet.
Balance Sheet
On the steadiness sheet, whole belongings rose by 14.4% to N24.14 billion from N21.09 billion in 2024, whereas whole 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 money and money equivalents rising to N622.21 million from N76.39 million in 2024.
Total fairness fell considerably by 87.8% from N3.44 billion in 2024 to N421.78 million.
Market response
The share worth closed at N7.55 on Monday, October 12, 2026, marking a 32.22% YoY improve from N5.71.
