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FTN Cocoa to benefit from rising cocoa prices

What most investors have been terming as a hunch is beginning to become concrete signals of increased earnings for FTN cocoa plc. This is due to the rising cost of cocoa prices in the international market.

Information from international sources at at January 13, 2009 clearly indicated that cocoa futures have hit its highest price in 23 years. It is reported that the commodity is on high demand compared to a lapse in supply. Africa which is known to be one of the largest producers of the commodity is said to be experiencing a fall in production currently.

FTN Cocoa plc is therefore positioned to benefit from the rising price of cocoa as it is a major exporter of the commodity amongst other Nigerian players. Some of its international customers include:

Unicom International Bv, Zaamdam, Amsterdam
All Trade International, Paris
Theobroma International Bv, Amsterdam/ED & FMAN COCOA.
Armajaro International, UK
Union Chocolate, Poland Delfi Nord Cacao, France/Amsterdam
Indcresa, Barcelona, Spain.
It would be recalled that the company had a private placement last year and was listed on listed on the exchange in the same year. According to the earnings forecast in the offer prospectus, profit after tax for 2008, 2009 and 2010 was pegged at N596,400,000, N735,000,000 and N870,100,000 respectively. Earnings per share was pegged at N0.30, N0.37 and N0.44 for 2008, 2009 and 2010. Consequently, dividend forecast has been pegged at N0.10, N0.15 and N0.20 for the next 3 years effective 2008.

1 comment:

detective said...

The news is totally misleading. Right now no cocoa grinder is making any money. Reason is that cocoa beans are input and the input price is all time high while output is Butter whose prices have come down as economoy is down. Any processor who is showing margin is misleading and needs to be investigated.

 
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