Cocoa Processing Company Report lost $7.9m in 2020

A loss of $7.9 million was reported by the Cocoa Processing Company plc (CPC) in 2020,

while the company’s revenue plummeted from $28,433,361 in 2019 to

$13,645,898 in 2020, according to CPC.

Cocoa pods and their shells, as well as other agricultural waste, will be used to

power the company’s Combined Heat Power into a Biomass Plant.

The 18-month project is estimated to lower utility costs by 28% in the first year and

by 63% in the following years when payment of the loan facility is completed.

The plans of Cocoa Processing Company

It is also seeking and establishing new markets in Rwanda, Kenya, Angola, South

Africa, and the United Arab Emirates, which the firm is actively pursuing. Golden

Tree goods are being discussed at a high level with the Head of Missions of these countries.

Address to the company’s annual general meeting on Friday in Accra

Chairman of the Board of Directors Mr. Kwaku Owusu Baah made the announcement.

In 2020, the firm lost $7.9 million, compared to a loss of $259,358 in 2019.

Turnover decreased from $28,433,361 in 2019 to $13,645,898 in 2020, a significant decrease.

As part of its efforts to improve plant and machinery efficiency, Buhler Company Limited,

one of the manufacturers of cocoa plant and machinery, has been approved

by the company with the help of the government to discuss technical support

for the retooling of some processing equipment to order to achieve

efficiency and increase revenues, according to Mr. Baah.

As a result of the COVID-19 epidemic, governments throughout the world

implemented limitations on mobility, such as curfews, borders closed, and travel

bans, to prevent the virus from spreading.

The Chairman of the Board noted that these actions had a detrimental effect on all

industries globally and that the firm was particularly hard hit since it was unable to

export $20.8 million worth of semi-finished cocoa goods.

While the pandemic and aging manufacturing equipment contributed to increased

downtime and associated expenses, “he said,” he added, “these events caused

difficulties for the company’s operations during the year under review,” he said.

When Nana Agyenim Boateng I was CEO of the firm in 2018/2019, cocoa beans

supply erratic hampered the company’s estimates and as a consequence,

the company could only process around 50% of the previous year’s production.

The demand for chocolate confectionery items, on the other hand, he said,

he said, had a significant impact on confectionery sales.

According to him, this was due to increased public knowledge of the immune-boosting benefits of cocoa used.

There were major setbacks in profitability and development, Nana Boateng added,

as a consequence of uneven beans supply as well as issues with plant and gear efficiency.

As Nana Boateng said, “the Board of Directors and Management will continue,

as vowed always, to pursue our aim of turning your firm around into a viable enterprise.”

Source: GNA