CPC's loss, though an improvement from the $6.33 million deficit in the same period the previous year, underscores persistent financial challenges within the company, according to a report in businessghana.com
Cocoaradar.com understands that key factors contributing to the loss include higher costs, operational expenses, and liquidity issues, primarily due to operational expenses and ongoing loan repayments. This is despite revenue increasing to $12.74 million, driven by higher sales of cocoa butter and confectionery products.
Declining production
CPC’s financial struggles reflect broader challenges in Ghana’s cocoa industry, including declining production, aging cocoa trees, and environmental issues including illegal gold mining. These factors have reduced cocoa yields, affecting the supply chain and the country’s foreign exchange earnings.
Dr. Kristy Leissle, Founder & CEO, African Cocoa Marketplace, said: "As the makers of Ghana's iconic Golden Tree chocolate brand, and a major domestic processor of semi-finished cocoa products, CPC has been a mainstay of Ghana's cocoa and chocolate sectors alike for decades.
"Given the higher costs that all cocoa processors and chocolate makers have been facing in the past year or so, it's not a surprise to learn that CPC's bottom line is also suffering.
"What is unfortunate is that their posted loss seems to have been driven at least in part by finance costs, and that the company is now seeking a significant loan facility to expand capacity and restructure existing debt.
"From the outside, it does seem as if CPC is caught in an unhappy borrowing cycle. On the bright side, the company does seem to be gaining some sales momentum.
"As someone who hopes to see Ghana's flagship chocolate brand sustained long into the future, I hope that robust sales of confectionery and semi-finished products will improve CPC's bottom line and move them back towards profitability soon."
As reported in local media, to address these challenges, CPC is in advanced discussions with the African Export-Import Bank (Afreximbank) for an $86.7 million loan facility aimed at debt restructuring and capacity expansion.
Diversify product offerings
The company also plans to implement a bio-waste energy project to reduce utility costs by up to 40% and retool its confectionery factory to increase production capacity. Additionally, CPC intends to diversify its product offerings by introducing handcrafted chocolates and rebranded instant drinking chocolate.
Still, CPC’s net assets per share have fallen into negative territory, and auditors have raised concerns about the company’s ability to continue as a going concern.
As reported in cocoaradar.com last year the threat of insolvency of Produce Buying Company, Ghana’s largest LBC, after several years of substantial losses, is adding to the pressure on the country’s downstream supply chain.
The perilous plight of both companies highlights the urgent need for comprehensive reforms and strategic investments to stabilize and revitalize Ghana’s cocoa sector.
Anthony Myers
Cocobod's debt escalates
The Ghana Cocoa Board (Cocobod) regulates the sector but faces a significant financial crisis. Its debt has escalated to over $2 billion, with a revenue shortfall of $1.3 billion.
This financial strain has hindered the board’s ability to fulfill contractual obligations, leading to deferred cocoa deliveries and a loss of trust among international buyers.
The Ghanaian government has announced measures to revitalize the cocoa sector in response to the crisis. These include increasing the farmgate price of cocoa and providing farmers with free jute sacks, agrochemicals, and disease-resistant seedlings.
Additionally, according to an article in Modern Ghana, a full forensic audit of Cocobod’s operations is underway to address financial mismanagement.
Dr Ransford Abbey, Cocobod’s new chief executive officer, is visiting cocoa farmers throughout the country this month and has reportedly assured them of an increase in producer prices for the main 2025-2026 crop season, which begins in August.
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