FTN Cocoa Processors Plc entered 2025 facing deep financial strain, yet it began showing signs of recovery.
Consequently, shares jumped from ₦1.82 to ₦5.00 by year-end, lifting market capitalisation to ₦19.5 billion.
Strong Market Response
Investors welcomed the company’s progress in cutting losses and regaining control, reflecting growing market confidence.
FTN Cocoa Revenue And Loss Improvements
Meanwhile, revenue for nine months climbed to ₦2.19 billion, nearly three times the ₦637.51 million recorded the previous year.
At the same time, the company reduced losses sharply to ₦693.29 million from ₦12.58 billion, demonstrating effective cost control and restructuring.
Revenue tripled while losses fell eighteen times faster, indicating improved operational efficiency and reduced waste.
Although gross margins remain negative at -23.63%, each naira of sales now generates smaller losses.
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Cash Flow And Operational Stability
However, the balance sheet remains fragile, with liabilities rising to ₦21.67 billion and shareholders’ equity turning negative.
On a positive note, the company generated ₦2.99 billion in cash flow, reversing last year’s ₦2.29 billion outflow.
Furthermore, cash reserves climbed to ₦1.91 billion from ₦76 million, strengthening liquidity and operational flexibility.
FTN Cocoa converts raw cocoa beans into products for local and international food manufacturers.
By doing so, it retains value within Nigeria’s cocoa sector, supporting industrial growth and creating jobs.
Ownership remains concentrated, as three shareholders control 64.85%, actively guiding the turnaround strategy.
Management, led by CEO Abiola Aderonmu, focuses on controlling debt, improving efficiency, and sustaining revenue growth.
Although the company has not yet reached profitability, stabilising operations marks clear progress from past collapse.
Overall, FTN Cocoa’s journey demonstrates cautious optimism, but investors will monitor whether revenue growth, disciplined management, and debt control can sustain the recovery.
