CPC not profitable, shutdown not surprising - Analyst

“The Cocoa Processing Company (CPC) has not been profitable for some time now” and the shutdown of two of its plants is not surprising, according to Alex Boahene, Senior Analyst at Databank.
CPC announced Monday that it has in the interim shut down two of its two cocoa processing plants due to operational challenges.

Staff members have since been directed by the management of the company to stay at home as part of their annual leave with effect from January 25, 2016 while the factory remains shut.

This is not the first time the company has been shut down. In the 2011/2012 operational year, the company shut down for a while due to interruptions in water and electricity supply which continued to pose huge challenges to its operations.

Speaking on the Starr Business brief Wednesday, Mr. Boahene said things do not look good for the company which is listed on the Ghana Stock Exchange.

According to him, there have been efforts in the past to resuscitate the company but all proved futile.

Mr. Boahene stated that investors are likely to lose part or all their investments in the company if immediate measures are not put in place to prevent the crippling company from collapsing.

The Cocoa Processing Company is a Ghanaian cocoa processing company formed in 1981. They are listed on the stock index of the Ghana Stock Exchange.

Its chocolate varieties include Tetteh Quarshie Bar, Kingsbite, Oranco bar, Akuafo Bar, Portem Pride, Portem Nut, Coffeechoc, Choco-Bake, Choco Delight (chocolate spread), Groundnut Coated with Chocolate (Pebbles (Chocolate dragees)) and Royal Natural Cocoa Powder.

Source: Starrfmonline.com