COCOBOD records GHS 42.1m net loss in 2020
The 2020 State Ownership Report has disclosed that the Ghana Cocoa Board (COCOBOD) recorded a net loss of GHS 42.14 million in 2020.
This is a 102.85% decline as against a net profit of GHS 1.47bn recorded in 2019.
The decline was largely due to the impact of COVID-19 on production of cocoa beans and its purchases.
According to the report, the cocoa regulator recorded a total revenue of GHS 10.74bn in 2020, a 5.42% increment from the total revenue of GHS 10.18bn generated in 2019.
Also, revenue from operations was GHS 10.27bn in 2020 as against GHS 9.76bn in 2019. On average, COCOBOD’s total revenue increased by 19% per annum between 2016 and 2020.
In 2020, COCOBOD reported direct cost of GHS 8.13bn, representing a marginal increase of 0.06% from GHS 8.13bn in 2019. Direct costs, on average, increased by 6.31% per annum between 2016 and 2020.
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In terms of liquidity, COCOBOD’s current ratios were 0.82 and 0.75 in 2020 and 2019, respectively.
This indicates that the company may have difficulty in servicing its short-term obligations as they fall due.
The free cash flow position of COCOBOD was also negative, recording GHS 115.14 million in 2020 compared to GHS 496.52 million in 2020.
Average export price of cocoa per tonne in 2020 was estimated at $2,477, representing a 5.40% increase from the projected price per tonne of $2,350, resulting in the higher operating revenues of GHS 10.28 billion.
Production volume of cocoa beans was 775,488 metric tonnes, falling short of the projected volume of 850,000 metric tonnes.
The shortfall was attributed to diseased and moribund/overaged cocoa tree stock coupled with relatively longer dry weather conditions during the crop season.
Also, 773,378 metric tonnes of cocoa beans were sold, which was 9.01% below the projected sales of 850,000 metric tonnes due to lower production volumes.
