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The state-owned Cocoa Processing Company Limited (CPC) has recorded a loss of $9,568,898 in the first half of 2024, an increase from $9,155,700 during the same period in 2023, marking a 4.5% rise in losses.
This increase is mainly due to higher operational costs, including selling, distribution, and financial expenses.
CPC’s 2024 Unaudited Financial Statement shows a decline in total revenue to $22,198,703, down from $24,184,099 in the first half of 2023, reflecting an 8.2% decrease.
Production also fell sharply, with cocoa beans processed dropping to 2,886 metric tonnes from 6,614 metric tonnes in 2023. Similarly, semi-finished products packed decreased to 2,239 metric tonnes from 5,425 metric tonnes, and confectionery products packed declined to 1,049 metric tonnes from 1,418 metric tonnes.
To address these challenges and move towards profitability, CPC has secured a commitment from COCOBOD to continue supplying cocoa beans without demanding repayments that would jeopardize CPC’s operations.
The Board of Directors has also implemented cost-cutting measures, infrastructure investments, and revenue expansion strategies.
In an effort to strengthen its financial position, CPC is in discussions with the African Export-Import Bank (Afreximbank) for an $86.7 million loan facility.
This loan aims to settle outstanding debts to a syndicate of banks, support working capital needs, and upgrade property, plant, and equipment to expand production capacity.
Management expects to finalize the agreement by December 2024, with the first tranche of the loan to be disbursed by March 2025.
