Cocoa Processing Company Limited (CPC) recorded higher revenue in Q3 of its 2026 financial year, but rising production costs and finance expenses kept the company in a loss-making position.

According to its unaudited financial statements for the period ended June 30, 2026, CPC generated US$17.47 million in revenue, up from US$16.16 million in the comparable period of 2025. The company noted that the 2025 comparative figures had been restated to correct an error in previously reported numbers.

Despite the improvement in revenue, cost of sales increased to US$24.08 million from US$21.21 million, leaving CPC with a gross loss of US$6.61 million, compared with a gross loss of US$5.05 million a year earlier.

Operating losses also widened to US$8.99 million from US$7.29 million, while finance costs came in at US$2.39 million. The company eventually closed the period with a net loss of US$11.37 million, compared with a loss of US$10.23 million in June 2025.

Basic and diluted earnings per share consequently fell to negative US$0.0056, from negative US$0.0050 in the previous period.

Confectionery becomes CPC's biggest revenue source

Confectionery products generated US$8.90 million, making them the company's largest revenue contributor during the period. Cocoa liquor brought in US$4.69 million, while cocoa butter contributed US$3.29 million.

Cocoa powder generated US$585,421, while cocoa cake contributed just US$179.

Operationally, CPC processed 3,357 metric tonnes of cocoa beans, compared with 2,902 tonnes in June 2025.

Confectionery products packed also increased to 880 metric tonnes from 737 tonnes. However, semi-finished products packed declined to 2,178 metric tonnes, from 2,333 tonnes previously.

Cash position improves, but liabilities remain high

CPC's cash and bank balances improved sharply to US$9.15 million, from US$1.26 million in the comparative period.

Total assets stood at US$142.19 million, slightly below the US$143.72 million reported a year earlier. Meanwhile, total liabilities increased to US$144.43 million, leaving the company with negative equity of US$2.24 million.

Trade and other payables climbed to US$83.35 million, while total borrowings stood at about US$40.81 million, split between short-term borrowings of US$38.42 million and long-term borrowings of US$2.39 million.

CPC outlines turnaround plans

The company's directors said they have been engaging the sector minister and commercial banks to raise capital as part of efforts to turn the business around, with discussions expected to reach a conclusion before the end of the 2026 financial year.

CPC also plans to invest in new production equipment, including an additional Chocomaster moulding plant, three wrapping machines and a drinking chocolate plant.

Management is also looking to expand its product range through handcrafted and customised chocolates, improve the visibility of its GoldenTree confectionery products and rebrand its instant drinking chocolate products.

For investors, CPC's latest results show a company generating more sales and processing more cocoa, but still facing significant pressure from production costs, debt and accumulated losses.