The loss position of state firm, Cocoa Processing Company continues to worsen as it recorded a loss of $8.4 million in the first half of this year, from $5.4.million registered during the same period last year.
The loss was as a result of increasing operational costs, particularly selling and distribution costs and financial costs.
According to its 2021 Unaudited Financial Statement, total revenue for the first half of 2021 however more than doubled to $26.9 million, as against $11.1 million in June 2020.
The significant revenue was due to increase demand for the firm’s products (chocolate and cocoa confectionary).
Meanwhile, for CPC to improve its operations and get to profitability in future, COCOBOD has agreed to continuously supply cocoa beans to the company to meet its operational demand.
Importantly, the regulator of the cocoa industry will not demand for repayments of amounts due in a manner that would jeopardize operations of CPC.
The Board of Directors have also implemented measures that will turn around the company and make it profitable in the near future.
The measures include cost cutting, investments in infrastructure and machinery and expanding the revenue base.
COCOBOD and the Government of Ghana are the largest shareholders of CPC as COCOBOD owns 57.73% of the company, whilst government controls 26.13% of the company. SSNIT is the 3rd largest shareholder with 10.14% of the shares.
|Operating Loss/Profit (US$)||-5.49m||-3.14m|
|Loss/Profit after tax (US$)||-8.40m||-5.43m|
|Earnings per Share (US$)||-0.0041||-0.0027|