While Nigeria’s FTN Cocoa Processors Plc has returned to the path of profitability, the company is not out of the woods yet as a debt load exposes it to bankruptcy risk.
For the first six months through June 2026, FTN Cocoa Processors posted a profit after tax (PAT) of N657.66 million from a loss after tax of N1.13 billion as at June 2025.
The stellar performance was largely driven by an impressive expansion in sales as revenue surged by 129.44 percent to N4.13 billion in June 2026 from N1.80 billion the previous year.
Analysts who spoke with MoneyCentral correspondent said the reduction in inflated export costs and the acceleration of trade agreements were pivotal to local processors’ increased sales.
However, a N16.47 billion accumulated loss or negative revenue reserve indicates the company has made more operating losses than profit throughout its existence and such a precarious situation hinders it from paying dividend to shareholders.
Of course, the abrupt devaluation of the currency a few years ago forced local grinders like FTN Cocoa Processors to slash grinding capacity (dropping as low as 4 percent) as higher domestic raw material and operational costs made purchasing beans unviable.
Also, logistics issues such as the menacing gridlock at the port as well as spiraling energy costs contributed to operating losses.
Another elephant in the room is mounting debts in the books of the FTN Cocoa Processors. The deteriorating balance sheet means the company is not impervious to financial risk or it could be bankrupted.
For instance, debt-to-equity stood at 2,862 percent as at June 2026, according to MoneyCentral calculation. This means that the local processor had N28.62 of debt for every N1 of equity.
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