Economy
FTN Cocoa Blames Inadequate Working Capital for N664m FY20 Loss
By Dipo Olowookere
In the 2020 financial year, FTN Cocoa Processors Plc recorded a loss after tax of N664.1 million in contrast to the loss after tax of N601.3 million it recorded in the 2019 reporting year.
According to the firm, this loss was caused by the “lack of adequate working capital to produce at optimal level coupled with heavy finance cost.”
In the past weeks, shares of FTN Cocoa have melted the hearts of investors, who started to develop feelings for the company’s equities after a suspension placed on the firm by the Nigerian Stock Exchange (NSE) was lifted.
The exchange sanctioned FTN Cocoa on September 1, 2020, for failing to file its results at the appropriate time and after the board did the needful and the embargo was removed on November 27, 2020, its equity price began to rise at the market.
FTN Cocoa, which was at 26 kobo when the suspension was placed by the NSE, rose as high as 89 kobo in December before falling to 55 kobo by end of January 2021 and closed at 53 kobo on Tuesday, February 2, 2021.
According to information scooped by Business Post, a rumour that an investor was planning to come into the company spurred market participants to have an interest in the shares.
Over the weekend, the company released its financial statements for the year ended December 31, 2020, and from the analysis by Business Post, the performance of the firm was awful.
The revenue generated by FTN Cocoa in the year significantly went down to N235.2 million from N672.2 million and this was mainly due to a decline in both local and export sales.
Though the cost of sales reduced to N532.4 million from N1.2 billion in 2019, the firm ended the year with a gross loss of N297.2 million in contrast to N476.1 million gross loss of the preceding year.
However, the operating expenses of the organisation increased in the period under consideration to N225.1 million from N167.8 million as a result of the cost incurred on office and general expenses; legal and professional fee; and AGM costs.
At the close of transactions for the year, FTN Cocoa reported an operating loss of N486.9 million, lower than the operating loss of N512.0 million of the previous year.
On the balance sheet, the total assets of FTN Cocoa stood at N4.6 billion in FY 2020 versus N4.7 billion in FY 2019, while the total liabilities stood at N5.8 billion last year as against N5.2 billion a year earlier and this was caused by an increase in borrowings.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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