FTN Cocoa processor in its audited financial report for 2023 recorded foreign exchange loss of N10.17 billion while recording zero revenue for the year.
In the financial report published on the NGX, the company incurred a loss after tax of N10.65 billion majorly due to the FX losses and finance cost.
Key highlights of the report
- Revenue- zero
- Profit/(loss) after tax- (N10.65 billion)
- Finance cost- (N209.74 million)
- Loss per share- (N2.73k)
- Operating expenses – (N486.30 million)
- Other operating income- N222.31 million
Relative to the prior year (2022), the company saw its revenue plummet by 100%, dropping from paltry N62.19 million. Simultaneously, there was a surge in operational expenses (OPEX), which escalated from N124.74 million in 2022 to N486.30 million, marking a 289.8% increase in operating costs.
The company experienced a significant downturn in its foreign exchange dealings. After a foreign exchange (FX) revaluation gain of N13.30 million in 2022, it faced a staggering FX loss of N10.17 billion.
In 2023, the company’s losses widened, escalating by N10.21 billion from the N431.18 million after-tax loss recorded in 2022.
Despite these increased losses, the loss per share decreased from N11.06k in 2022 to N2.73k in the year being reviewed.
What you should know
The foreign exchange revaluation loss of N10.17 billion experienced by the company is not an isolated incident, as its peers have suffered greater setbacks in the previous year.
These losses are a result of the Central Bank of Nigeria’s (CBN) decision to consolidate the various foreign exchange rates in June of the previous year, which led to the naira depreciating from around N600 to nearly N1000 by the end of 2023.
The company has been consistently incurring losses and combined with its significant debt, is facing the prospect of bankruptcy. It has issued an 18-year bond worth JPY 500 million through Daewoo Securities (Europe) at a yield of 4.375%, which is set to mature in 2026.