FTN Cocoa did not generate any revenue in the year 2023


FTN Cocoa Processors, one of Nigeria’s oldest cocoa companies, faced a financial setback in 2023, reporting zero earnings due to challenges in working capital adequacy, as revealed in its recently filed financial statements for the year ending December 2023 with the Nigerian Exchange Limited.

The company experienced a drastic 100% decline in revenue compared to the previous year, citing the inability to produce amid lingering working capital inadequacy.

This resulted in a significant impact on gross margin due to substantial fixed costs.

Despite zero production and revenue, the cost of sales amounted to N200.49m, operating expenses rose to N284.48m, and exchange loss soared to N7.76bn from N13.30m in 2022. Finance costs added to the challenges, contributing to a total loss of N8.13bn, a notable increase from N431.19m in 2022.

In contrast, FTN Cocoa’s total assets saw a substantial 82.86% increase to N13.31bn from N7.28bn, while total liabilities rose by 106.77% to N18.26bn.

To address working capital challenges, FTN Cocoa secured a short-term loan facility from Zedcrest Capital Limited and received investment from its core investor, OH Ecosystem.

The company is actively undergoing a factory facelift, importing spare parts, and preparing for the resumption of operating activities.

In June 2023, stakeholders approved a convertible loan of $6.35m from OH Ecosystems LLC.

The company is authorized to provide security for this loan and raise additional funds as deemed necessary for business operations, subject to regulatory approval.

Additionally, FTN Cocoa had issued an 18-year bond in 2008, due in 2026, to Daewoo Securities (Europe) with an option to convert the bond into ordinary shares at maturity.

The proceeds from the bond issue in 2009 were utilized for the initial expansion of the company.



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