Ghana Cocoa Board (COCOBOD) posted a net loss of ¢42.14 million in 2020 compared to a net profit of ¢1.478 billion in 2019, a 102.85% decline.
This was largely due to the impact of COVID-19 on production of cocoa beans and its purchases.
According to the 2020 State Ownership Report, net profit margin was 0.24% compared to the net profit margin of 0.20 percent in 2019.
The cocoa regulator recorded total revenue of ¢10.741 billion in 2020, which was a 5.42% increase from total revenue of ¢10.189 billion generated in 2019.
Also, revenue from operations was ¢10.273 billion in 2020 (2019: ¢9.762 billion). On average, COCOBOD’s total revenue increased by 19% per annum between 2016 and 2020.
In 2020, COCOBOD reported direct cost of ¢8.139 billion, representing a marginal increase of 0.06% from ¢8.134 billion in 2019. Direct cost, on average, increased by 6.31% per annum between 2016 and 2020.
In terms of liquidity, COCOBOD’s current ratios were 0.82 and 0.75 in 2020 and 2019, respectively.
This indicated 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 ¢115.14 million in 2020 compared to ¢496.52 million in FY2020.
Key operational results
Average export price of cocoa per tonne in 2020 was estimated at $2,477, representing a 5.40% increase from projected price per tonne of 2,350. This resulted in higher operating revenues of ¢10.28 billion.
Production volume of cocoa beans was 775,488 metric tonnes, falling short of 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 projected sales of 850,000 metric tonnes due to lower production volumes.