FTN Cocoa Processors Plc has released its audited financial results for the year ended December 31, 2025, showing a notable reduction in losses despite remaining in negative territory for the tenth consecutive year.
The company reported a pre-tax loss of ₦252.65 million — a significant improvement compared to the ₦9.5 billion loss recorded in 2024 — even as revenue surged sharply during the period.
Revenue Growth Outpaced by Rising Costs
A standout feature of the 2025 performance was strong top-line growth. Revenue climbed by 310% year-on-year to ₦5.65 billion, up from ₦1.38 billion in 2024. This expansion was largely driven by increased exports of cocoa derivatives such as butter, cake, and liquor, alongside contributions from domestic sales of cocoa powder and palm kernel oil.
However, the cost of generating that revenue rose even faster. Cost of sales jumped dramatically to ₦6.33 billion from ₦536.6 million the previous year — driven primarily by a surge in raw material expenses, which rose to ₦5.27 billion from just ₦131 million in 2024.
As a result, the company recorded a gross loss of ₦685.92 million, a reversal from the ₦839.2 million gross profit reported a year earlier. The cost of sales exceeded revenue by roughly 12%, underscoring the pressure on margins.
Expenses Climb, but Exchange Gains Offer Relief
Operating costs also increased during the year. Selling and distribution expenses rose to ₦28.8 million from ₦17.4 million, while total operating expenses nearly doubled to ₦847.9 million from ₦409.6 million.
Despite these pressures, FTN Cocoa posted an operating profit of about ₦304.72 million, supported by a significant exchange gain of ₦1.84 billion. This marks a sharp turnaround from 2024, when the company recorded an exchange loss of over ₦10.6 billion.
The absence of heavy foreign exchange losses — which had previously weighed heavily on earnings — played a crucial role in reducing overall losses.
Ultimately, loss after tax stood at ₦252 million, down sharply from ₦9.5 billion in 2024, while loss per share improved to ₦0.06 from ₦2.44.
Balance Sheet Pressures Persist
On the balance sheet, total assets rose modestly by about 5% to ₦22.14 billion, driven by investments in property, plant, equipment, and plantation development.
However, this growth came alongside a significant increase in liabilities, which climbed to ₦21.61 billion. Borrowings accounted for the bulk of this figure, standing at ₦21.1 billion in 2025.
Equity weakened considerably, falling to ₦543 million from ₦3.44 billion in the previous year. This decline was largely due to accumulated losses, which pushed retained earnings deeper into a deficit position of ₦26.83 billion.
Additionally, a ₦2.4 billion reduction in capital reserve (hybrid capital) — from ₦12.54 billion in 2024 to ₦10.14 billion in 2025 — further eroded shareholders’ equity.
Market Performance Holds Steady
Despite ongoing losses, the company’s stock has shown resilience. As of April 2, 2026, shares of FTN Cocoa Processors Plc closed at ₦5.33 on the Nigerian Exchange Group, reflecting a year-to-date gain of 6.6%.
With a market capitalisation of approximately ₦20.8 billion, the company currently ranks as the 91st most capitalised stock on the exchange.
Outlook
While the sharp reduction in losses and strong revenue growth suggest operational momentum, persistent cost pressures — particularly around raw materials — continue to challenge profitability.
Going forward, the company’s ability to manage input costs, reduce reliance on debt, and sustain export growth will be critical in determining whether it can finally return to consistent profitability after a decade of losses.