Multi-Trex Integrated Foods PLC, Nigerian cocoa processing and Export company, posted an operating loss that rekindles the memories of those years of underperformance which led to its assets being taken over by the asset management authority.
The cocoa processing company posted a loss after tax of N615.06 million in the year ended April 2026, compared to N432.20 million as at year ended April 2025.
While sales surged by 7,435 percent to N3.60 billion in the period under review, cost of sales also spiked by 45,333 percent to N3.09 billion.
It is important to note that operating expenses of N1.11 billion exceeded gross profit of N512.69 million, which resulted in the operating loss.
An analysts who spoke on the condition of anonymity because of the sensitivity of the matter said the company is walking on the path of sustained losses that triggered a crisis that led to a seven-year cessation.
Due to a debt crisis, the Asset Management Corporation of Nigeria (AMCON) seized Multi-Trex assets in 2011.
The company restarted operations in 2025 after a recovery underpinned by a strategic partnership with N-Foods Universal Concept Limited which helped liquidate legacy debt owed to the Asset Management Corporation of Nigeria (AMCON).
A healthier Balance Sheet
The capital injection by N-Food Universal Concept Limited that now owns a 70 percent stake in the cocoa processing and export company has helped clean debts in the balance sheet.
For instance, gearing ratio stood at 0.09 as at year end April 2026, which is lower than 2025’s 0.04 the previous year.
A lower gearing makes the company impervious to rising interest rates, gives it greater financial flexibility, and reduces financial risk.
But there are growing concerns that recurring operating losses expose the firm to technical insolvency that undermines the balance sheet.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
