Despite a significant increase in revenue, the company reported a net loss of 2.97 million, slightly improved from the 3.15 million loss recorded in the same period last year.

CPC’s revenue for the quarter stood at 8.82 million, an increase from 5.54 million in the previous year. However, the cost of sales also rose sharply to 10.07 million, up from 6.88 million, resulting in a gross loss of 1.25 million. The company’s operating loss narrowed slightly to 2.03 million, compared to $2.20 million in the prior year.

The loss per share remained unchanged at 0.0015, reflecting the company’s ongoing financial struggles. Total assets remained relatively stable at 129.04 million, while net assets per share dipped to a negative 0.0002, down from 0.0028 in December 2023.

CPC processed 808 metric tons of cocoa beans during the quarter, a decline from 1,006 metric tons in the same period last year. The production of semi-finished and confectionery products also decreased, with 649 metric tons of semi-finished products and 225 metric tons of confectionery products packed, compared to 745 metric tons and 435 metric tons, respectively, in 2023.

CPC’s management has outlined a comprehensive turnaround strategy in response to the financial challenges. Key initiatives include cost-cutting measures, infrastructure investments, and efforts to expand the company’s revenue base.

: CPC has entered into an agreement with Captive Energy Company Limited to produce steam and power using bio-waste materials, which is expected to reduce utility costs by 40% annually. Additionally, the company has constructed six boreholes to cut water costs by 168,000 to 220,000 per year.

: The company has secured a GH¢16 million loan from Prudential Bank Limited under the Government of Ghana’s Stimulus Package Programme to acquire new equipment for its confectionery factory. This investment aims to increase production capacity from 3,000 metric tons to 15,000 metric tons. CPC is also retooling its cocoa factory lines to expand capacity from 64,500 metric tons to 87,657.

: CPC plans to introduce new products, including hand-crafted chocolates, nutty chocolates, and customised chocolate bars. The company is rebranding its Alltime instant drinking chocolate and launching a new product, Goldentree instant drinking chocolate. Additionally, CPC is exploring tolling arrangements with relevant parties to boost revenue.

: The company is negotiating a collateral management agreement with Cocoa Marketing Company (CMC) to secure a steady supply of 23,000 metric tons of cocoa beans annually.

CPC’s total liabilities increased to 129.41 million, up from 123.28 million in the previous year. The company’s equity position worsened, with a negative equity of 365,450 compared to a positive equity of 5.75 million in December 2023. The debt-to-equity ratio deteriorated significantly, reflecting the company’s strained financial position.

Despite the losses, CPC’s directors remain optimistic about the company’s future. They are in advanced discussions with the African Export-Import Bank (Afreximbank) to secure an $86.7 million loan facility. The loan will be used to settle outstanding debts, support working capital, and fund retooling efforts. The first tranche of the loan is expected to be disbursed by September 2025.

The Ghana Cocoa Board (COCOBOD) has also committed to providing CPC with a continuous supply of cocoa beans, ensuring the company’s operational demands are met without jeopardising its financial stability.

As of December 31, 2024, CPC’s largest shareholders remain the Ghana Cocoa Board (57.73%), the Government of Ghana (26.13%), and the Social Security & National Insurance Trust (10.14%). The top 20 shareholders collectively hold 94.97% of the company’s shares.

While CPC continues to face significant financial challenges, the company’s management is taking proactive steps to stabilise operations and return to profitability. The success of these measures will depend on the timely execution of the turnaround strategy and the support of key stakeholders, including COCOBOD and Afreximbank. Investors and stakeholders will closely monitor the company’s progress in the coming quarters.