The financial difficulties for the state-owned Cocoa Processing Company Limited (CPC) have worsened, as the company reported a $9.57 million loss for the first half of 2024, up from $9.16 million during the same period last year—an increase of 4.5%.
The surge in losses is largely due to rising operational costs, particularly in selling, distribution, and financial expenditures.
According to the 2024 Unaudited Financial Statement, CPC’s revenue for the first half of 2024 fell to $22.20 million, a decrease of 8.2% from $24.18 million in the first half of 2023.
Production volumes have also sharply declined, with processed cocoa beans dropping to 2,886 metric tonnes from 6,614 metric tonnes in 2023. Similarly, the amount of semi-finished products packed fell to 2,239 metric tonnes from 5,425 metric tonnes, and confectionery products packed decreased from 1,418 metric tonnes to 1,049 metric tonnes.
To tackle these financial challenges and return to profitability, CPC has secured a commitment from COCOBOD to ensure a steady supply of cocoa beans while avoiding repayment terms that could threaten its operations.
The Board of Directors has introduced several strategies to turn the company around, including cost reductions, investments in infrastructure and machinery, and efforts to broaden the revenue base.
Additionally, CPC’s management is negotiating with the African Export-Import Bank (Afreximbank) for an $86.7 million loan. This funding is intended to pay off existing bank debts, support working capital, and enhance production capabilities through property and equipment upgrades.
The management expects to finalize the loan agreement by December 2024, with the initial funds anticipated to be available by March 2025.
