FTN Cocoa revenue surges 310% to N5.65 billion in 2025 amid high production costs

FTN Cocoa Processors Plc has released its 2025 financial statements, recording a sharp increase in revenue for the year ended December 31, 2025, with sales rising 310.5% to N5.65 billion from N1.38 billion in 2024.

However, the stronger top line did not translate into a return to profitability, as the company reported a loss before tax of N273.40 million, although this was significantly lower than the N10.62 billion loss recorded in the previous year.

The results show that high production costs, low factory utilisation and finance expenses continued to weigh profitability, while a foreign exchange gain helped cushion the overall loss.

The main highlight of FTN Cocoa’s 2025 results was the sharp increase in revenue, which rose by approximately N4.27 billion year-on-year.

Export sales of cocoa butter contributed N3.54 billion, while local sales generated N2.10 billion, largely from cocoa powder, which accounted for N2.10 billion.

However, other operating income and, particularly, a foreign exchange gain helped improve the reported operating result.

FTN Cocoa recorded a foreign exchange gain of N1.84 billion in 2025, compared with a foreign exchange loss of N11.68 billion in the previous year. This swing was a major contributor to the improvement in operating performance, helping the company move from an operating loss of N10.31 billion to an operating profit of N304.72 million.

The improvement should therefore be viewed in context: the company remained loss-making before tax, and the reported turnaround was substantially supported by exchange-rate movements rather than a positive gross margin.

Equity declined sharply to N421.78 million from N3.44 billion, reflecting the accumulated impact of losses and adjustments recorded during the year. The company also reported a restatement of previously overbooked export sales and adjustments relating to convertible financing in its statement of changes in equity.

These movements further underline the importance of restoring consistent operating profitability and strengthening the balance sheet.

On the balance sheet, total assets rose by 14.4% to N24.14 billion from N21.09 billion in 2024, while total 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 cash and cash equivalents rising to N622.21 million from N76.39 million in 2024.

Total equity fell significantly by 87.8% from N3.44 billion in 2024 to N421.78 million.

The share price closed at N7.55 on Monday, October 12, 2026, marking a 32.22% YoY increase from N5.71.

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