Buy Or Sell Opportunity • May 14
Now 25% undervalued Over the last 90 days, the stock has risen 52% to ₦10.00. The fair value is estimated to be ₦13.32, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 115% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to ₦8.30, the stock trades at a trailing P/E ratio of 25.3x. Average trailing P/E is 22x in the Food industry in Nigeria. Total returns to shareholders of 2,577% over the past three years. Reported Earnings • May 05
First quarter 2026 earnings released: EPS: ₦0.24 (vs ₦0.15 loss in 1Q 2025) First quarter 2026 results: EPS: ₦0.24 (up from ₦0.15 loss in 1Q 2025). Revenue: ₦1.09b (up 90% from 1Q 2025). Net income: ₦954.4m (up ₦1.53b from 1Q 2025). Profit margin: 88% (up from net loss in 1Q 2025). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 184% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Jan 31
New major risk - Revenue and earnings growth Earnings have declined by 29% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 29% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Revenue is less than US$5m (₦5.6b revenue, or US$4.1m). Market cap is less than US$100m (₦27.3b market cap, or US$19.7m). New Risk • Jan 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Nigerian stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (11% average weekly change). Negative equity (-₦108m). Minor Risks Revenue is less than US$5m (₦2.9b revenue, or US$2.1m). Market cap is less than US$100m (₦27.5b market cap, or US$19.4m). Valuation Update With 7 Day Price Move • Jan 09
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₦6.66, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 24x in the Food industry in Nigeria. Total returns to shareholders of 2,279% over the past three years. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₦5.10, the stock trades at a trailing P/E ratio of 8.4x. Average trailing P/E is 15x in the Food industry in Nigeria. Total returns to shareholders of 1,659% over the past three years. Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₦5.25, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 15x in the Food industry in Nigeria. Total returns to shareholders of 1,650% over the past three years. New Risk • Oct 29
New major risk - Negative shareholders equity The company has negative equity. Total equity: -₦108m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Negative equity (-₦108m). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Revenue is less than US$5m (₦2.9b revenue, or US$2.0m). Market cap is less than US$100m (₦20.5b market cap, or US$14.1m). Tillkännagivande • Aug 19
FTN Cocoa Processors Plc, Annual General Meeting, Sep 25, 2025 FTN Cocoa Processors Plc, Annual General Meeting, Sep 25, 2025, at 12:00 W. Central Africa Standard Time. New Risk • Apr 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Nigerian stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₦1.4b free cash flow). Negative equity (-₦4.5b). Earnings have declined by 75% per year over the past 5 years. Revenue is less than US$1m (₦638m revenue, or US$397k). Market cap is less than US$10m (₦7.02b market cap, or US$4.37m). Minor Risk Share price has been volatile over the past 3 months (8.3% average weekly change). New Risk • Jul 31
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₦1.5b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₦1.5b free cash flow). Share price has been highly volatile over the past 3 months (11% average weekly change). Negative equity (-₦3.5b). Earnings have declined by 72% per year over the past 5 years. Revenue is less than US$1m (₦638m revenue, or US$396k). Market cap is less than US$10m (₦6.01b market cap, or US$3.73m). New Risk • May 30
New major risk - Negative shareholders equity The company has negative equity. Total equity: -₦4.2b This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Negative equity (-₦4.2b). Earnings have declined by 64% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (₦4.33b market cap, or US$3.28m). New Risk • Apr 19
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Nigerian stocks, typically moving 12% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 39% per year over the past 5 years. Revenue is less than US$1m. Market cap is less than US$10m (₦5.34b market cap, or US$4.64m). Reported Earnings • Oct 25
Third quarter 2023 earnings released: ₦0.035 loss per share (vs ₦0.015 loss in 3Q 2022) Third quarter 2023 results: ₦0.035 loss per share (further deteriorated from ₦0.015 loss in 3Q 2022). Net loss: ₦139.3m (loss widened 16% from 3Q 2022). Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 87% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Jul 20
First half 2023 earnings released: ₦0.055 loss per share (vs ₦0.08 loss in 1H 2022) First half 2023 results: ₦0.055 loss per share. Net loss: ₦192.4m (loss widened 13% from 1H 2022). Reported Earnings • Apr 29
First quarter 2023 earnings released: ₦0.02 loss per share (vs ₦0.04 loss in 1Q 2022) First quarter 2023 results: ₦0.02 loss per share. Net loss: ₦89.8m (flat on 1Q 2022). Reported Earnings • Jan 27
Full year 2022 earnings released: ₦0.09 loss per share (vs ₦0.67 loss in FY 2021) Full year 2022 results: ₦0.09 loss per share (improved from ₦0.67 loss in FY 2021). Net loss: ₦363.2m (loss narrowed 75% from FY 2021). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Chairman of the Board Simeon Oguntimehin was the last director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 02
Third quarter 2022 earnings released: ₦0.015 loss per share (vs ₦0.072 loss in 3Q 2021) Third quarter 2022 results: ₦0.015 loss per share (improved from ₦0.072 loss in 3Q 2021). Net loss: ₦120.0m (loss narrowed 24% from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Reported Earnings • Jul 21
Second quarter 2022 earnings released: ₦0.04 loss per share (vs ₦0.24 loss in 2Q 2021) Second quarter 2022 results: ₦0.04 loss per share (up from ₦0.24 loss in 2Q 2021). Net loss: ₦80.5m (loss narrowed 85% from 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Reported Earnings • Apr 27
First quarter 2022 earnings released: ₦0.04 loss per share (vs ₦0.074 loss in 1Q 2021) First quarter 2022 results: ₦0.04 loss per share (up from ₦0.074 loss in 1Q 2021). Net loss: ₦89.3m (loss narrowed 45% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has increased by 25% per year, which means it is well ahead of earnings. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). Chairman of the Board Simeon Oguntimehin was the last director to join the board, commencing their role in 2008. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Jan 29
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: ₦0.48 loss per share (down from ₦0.38 loss in FY 2020). Net loss: ₦1.06b (loss widened 26% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Reported Earnings • Nov 01
Third quarter 2021 earnings released: ₦0.072 loss per share (vs ₦0.074 loss in 3Q 2020) Third quarter 2021 results: Net loss: ₦158.5m (loss narrowed 2.5% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Reported Earnings • Aug 01
Second quarter 2021 earnings released Second quarter 2021 results: Net loss: ₦527.4m (loss widened 375% from 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 34% per year, which means it is well ahead of earnings. Reported Earnings • May 07
First quarter 2021 earnings released: ₦0.074 loss per share (vs ₦0.035 loss in 1Q 2020) First quarter 2021 results: Net loss: ₦162.2m (loss widened 108% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 16
New 90-day low: ₦0.41 The company is down 21% from a price of ₦0.52 on 16 December 2020. Underperformed the Nigerien market, which is up 5.0% over the last 90 days. Lagged the Food industry, which is flat over the same period. Reported Earnings • Feb 01
Full year 2020 earnings released: ₦0.30 loss per share (vs ₦0.36 loss in FY 2019) Full year 2020 results: Net loss: ₦664.1m (loss narrowed 17% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Nov 29
New 90-day low: ₦0.25 The company is down 4.0% from its price of ₦0.26 on 31 August 2020. The Nigerien market is up 38% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 26% over the same period. Reported Earnings • Nov 25
First quarter 2020 earnings released: ₦0.035 loss per share The company reported a decent first quarter result with reduced losses and improved control over expenses, although revenues were weaker. First quarter 2020 results: Revenue: ₦136.0m (down 31% from 1Q 2019). Net loss: ₦78.1m (loss narrowed 36% from 1Q 2019). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 16
Full year 2019 earnings released: ₦0.36 loss per share The company reported a soft full year result with increased losses and weaker control over expenses, although revenues were improved. Full year 2019 results: Revenue: ₦672.2m (up 12% from FY 2018). Net loss: ₦801.3m (loss widened 41% from FY 2018). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings.