The Cocoa Processing Company Limited (CPC), Ghana’s state-owned cocoa processor, reported a net loss of $13.08 million for the nine months ending September 30, 2024—a 5.6% rise from its $12.38 million loss during the same period last year.

The deepening losses are primarily driven by rising operational costs, including higher selling, distribution, and financial expenses.

According to CPC’s unaudited third-quarter financial statement, revenue fell to $31.1 million, down 3.86% from $32.3 million in the prior-year period.

The production also took a significant hit: cocoa bean processing dropped to 3,256 metric tonnes from 7,051 metric tonnes in 2023, while the output of semi-finished and confectionery products also declined sharply.

To sustain operations amid its financial struggles, CPC secured a commitment from Ghana's cocoa regulator, COCOBOD, to continue supplying cocoa beans without demanding repayments that would compromise CPC’s activities.

In response to the losses, the company’s board has introduced measures aimed at a turnaround, focusing on cost-cutting, infrastructure investments, and revenue diversification.

In a strategic move to shore up its finances, CPC is in talks with the African Export-Import Bank (Afreximbank) for an $86.7 million loan.

The proposed facility would cover CPC’s bank debts, working capital needs, and upgrades to plant and equipment for production expansion.

Management expects to finalise the loan by December 2024, with the first tranche anticipated by March 2025.