State-owned Cocoa Processing Company Limited (CPC) reported a deepening financial loss of $13.08 million for the nine months ending September 30, 2024, a 5.6% increase from the $12.38 million loss recorded during the same period last year. The mounting losses are primarily due to escalating operational costs, particularly in selling, distribution, and financial expenses.
According to CPC’s unaudited financial statement, revenue for Q3 2024 fell to $31.1 million, a 3.86% decrease from the previous year’s $32.3 million. Production also took a hit, with processed cocoa beans dropping to 3,256 metric tonnes from 7,051 metric tonnes in 2023. Output of semi-finished products and confectionery goods similarly declined by 57.5% and 15.9%, respectively.
To address its financial challenges, CPC has secured a commitment from COCOBOD for continued cocoa bean supplies without immediate repayment obligations that would disrupt operations. CPC’s Board is also implementing turnaround measures focused on cost reduction, infrastructure upgrades, and revenue expansion.
In an effort to strengthen its financial position, CPC is in talks with the African Export-Import Bank (Afreximbank) for an $86.7 million loan to clear outstanding debts, support working capital, and upgrade facilities. The company expects to finalize the loan agreement by December 2024, with disbursement of the first tranche projected by March 2025.
