Economy
FTN Cocoa Loss Deepens Despite Improvement in Q3 Revenue
By Dipo Olowookere
In the third quarter of 2021, FTN Cocoa Processors Plc recorded an expansion in its loss before and after taxes despite recording an improvement in revenue.
According to the financial statements of the company released on Monday, the revenue generated in the first nine months of this year was N278.2 million in contrast to the N227.3 million raked in the same period of last year.
A critical look into this by Business Post showed that this increase in revenue was boosted by local sales of cocoa powder, cocoa liquor and cocoa cake, which all accounted for N144.8 million versus N66.6 million in the first nine months of 2020.
In the period under review, export sales slightly decline as the firm generated N133.4 million from cocoa butter compared with N160.7 million achieved in the same period of last year.
However, it was observed that FTN Cocoa could not trim its cost of sales as this rose to N519.8 million from N475.0 million as the value of its raw materials jumped to N265.7 million from N178.0 million, personnel expenses lept to N52.7 million from N50.9 million, repairs and maintenance of factory building and plant/machinery went up to N7.5 million from N1.4 million, while other direct costs gulped N21.0 million versus N11.5 million a year ago.
As a result of its inability to cut down its cost of sales and operate optimally, the company posted a gross loss of N241.6 million compared with N247.7 million in Q3 of 2020.
It is important to note that FTN Cocoa has been producing below of 5 per cent of installed capacity due to the lingering working capital inadequacy. This impacted on the gross margin as a result of huge fixed cost that has to be borne.
Furthermore, the firm recorded operating expenses of N107.2 million as against N171.0 million in the corresponding period of last year, while the selling and distribution costs stood at N9.0 million in contrast to N11.9 million and with an other operating income of N28.3 million versus N47.0 million a year ago, FTN Cocoa closed September 30, 2021, with an operating loss of N329.6 million compared with an operating loss of N383.6 million.
It also declared a finance loss of N302.0 million compared with the finance income of N33.1 million, while the finance cost jumped to N216.5 million from N1.3 million, leaving it with a net finance loss of N518.5 million as against the net finance loss of N31.8 million in the corresponding period of 2020.
Consequently, it declared a loss before and after taxes of N848.1 million as against the pre-tax and post-tax losses of N351.7 million in Q3 of last year.
By Aduragbemi Omiyale
Trading in the equities of Fortis Global Insurance Plc on the floor of the Nigerian Exchange (NGX) Limited has been suspended.
The action was taken on Wednesday, June 17, 2026, by the regulatory subsidiary of the NGX Group Plc, NGX Regulation (NGX RegCo) Limited.
It was to prevent investors from buying and selling the company’s securities on the stock market ahead of its share reconstruction.
According to a circular signed by the Head of Issuer Regulation Department of NGX RegCo, Mr Godstime Iwenekhai, the suspension is also to determine the shareholders who are entitled to receive the reconstructed shares.
“Trading license holders and the investing public are hereby notified that trading in the shares of Fortis Global Insurance Plc was suspended on Wednesday, June 17, 2026.
“The suspension is necessary to prevent trading in the shares of Fortis Global Insurance Plc to enable the Company’s Registrars and the Central Securities Clearing System Plc (CSCS) to reconcile their books for the listing of the reconstructed shares on Nigerian Exchange Limited (NGX).
“The suspension is also required for the purpose of determining the shareholders who are entitled to receive the reconstructed shares,” the notice stated.
By Modupe Gbadeyanka
Efforts are being made to deepen collaboration to promote transparency and accountability in the collection of oil and gas revenue in Nigeria.
Two key organisations involved in this, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Revenue Service (NRS), recently held a strategic meeting to further work on ways to achieve this goal.
The chief executive of NUPRC, Mrs Oritsemeyiwa Eyesan, was at the headquarters of the tax-collecting agency in Abuja on Wednesday.
In discussions with the chairman of NRS, Mr Zacch Adedeji, she praised him for driving reforms that culminated in the enactment of the NRS Act.
Speaking on the transfer of revenue collection responsibilities, Mrs Eyesan said the process had been seamless, highlighting her organisation’s efforts to create an enabling environment for operators in the oil and gas industry.
She further revealed that Nigeria had the potential to produce 1.9 million barrels per day, having hit a peak production of 1.86 million barrels per day in May.
In his response, the NRS chairman praised NUPRC for its dynamism, professionalism and transparency, promising continued collaboration with the commission, particularly on matters relating to the transfer of revenue collection functions under the new Act.
“I collect revenue. I don’t generate revenue. Wherever revenue is, I work on it and keep an account for you. So, I’m helping you to collect your royalties,” Mr Adedeji said.
He pledged that the NRS would continue to support the commission to achieve its shared objective of increasing government revenues in a fair, transparent and sustainable manner.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange jumped 1.04 per cent on Wednesday, June 17, with the market capitalisation adding N26.99 billion to settle at N2.619 trillion compared with the previous session’s N2.592 trillion, and the Unlisted Security Index (NSI) rising by 45.1 points to close at 4,378.45 points, in contrast to the preceding day’s 4,333.35 points.
The rally was driven by the gains reported by two securities, which outweighed the losses posted by three securities, led by FrieslandCampina Wamco Nigeria Plc, which dipped by N1.95 to N178.19 per unit from N180.14 per unit. Geo-Fluids Plc lost 19 Kobo to close at N2.61 per share compared with Tuesday’s closing price of N2.80 per share, and Food Concepts Plc slid by 1 Kobo to N1.77 per unit from N1.78 per unit.
On the flip side, Central Securities Clearing System (CSCS) Plc recorded a N6.33 appreciation to trade at N86.57 per share versus the previous day’s N80.24 per share, and Light House Financial Services Plc grew by 10 Kobo to N1.13 per unit from the N1.03 per unit it closed a day earlier.
In the midweek session, the value of stocks traded by investors surged by 181.0 per cent to N128.3 million from the preceding session’s N45.6 million, the volume of securities increased by 305.6 per cent to 2.8 million units from Tuesday’s 688,290 units, and the number of deals executed jumped by 6.5 per cent to 33 deals from 31 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc remained the most active stock on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 67.3 million units exchanged for N4.6 billion.
GNI Plc also ended as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
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