FTN Cocoa partners U.S. firm to boost profitability
Turnover hits N1.3b in 2015
FTN Cocoa has announced the consummation of a strategic deal with Transmar Group of United States to repositioned its balance sheet from a turnover of N247 million in 2014 to N1.3 billion in 2015.
The deal, which, according to the Managing Director of the company, Abiola Aberonmu, has enabled Transmar to sign an uptake agreement with the firm, guaranteeing a market for all the company’s product up to installed capacity for the next five years and renewable.
Aberonmu, who stated this during the ‘fact behind figures’ of the company in Lagos recently, explained that Transmar, which is one of the top cocoa traders in the world would also provide technical support, especially in the areas of machines, spare parts and quality control.
He added that the company has obtained a quality assurance to penetrate into the global market without hitches.
Speaking further on the terms of agreement, explained that Transmar would be taking 100per cent of FTN products, adding that FTN cocoa has been looped into the global maintenance and quality control scheme of Transmar, which enables them to get spare parts at a lower cost.
“The Nestle deal that we have that makes us the no 1 supplier to Nestle is because we have looped into their global market. Nestle have a worldwide ways of giving other in cocoa. The benefit is there and we are enjoying the partnership.
“Before now, when we have problems, we would order for spare parts and most of these parts are off the shape, they have to be reproduced.
“Now, once there is any issue, and the spare part is not available, they can pull it from any of their factories from any country and that is why we hardly have any problem of parts. There is now a regular supply from their pool and spare parts are becoming cheaper.”
Aberonmu assured that the firm is fully edged against currency fluctuations, noting that;” Transmar is very strong and they are backing us up. There is market for our installed capacity. We don’t have problem any more producing without having market for them.
“One of the bane of cocoa industry, not only in Nigeria alone, including Cote de’voire is most time producing the goods and not having up takers. “The way to go in cocoa business is the volatility from currency. Today is when you have strategic partnership with very strong people and this make us competitive in the industry.
“We are working to consolidate existing rules and provide working capitals. We are currently discussing with couple of some development banks and local banks to boost our working capital.”
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1 Comments
We hope this deal doesn’t only exist on papers alone but should translate to adding value to shareholders’ investments because they have suffered enough and deserve better rewared which long over due.
We will review and take appropriate action.