PBC says set to capture lost market

The produce Buying Company Limited (PBC) on Tuesday said it is determined to capture part of its lost market share and maintain profitability in the years to come.

The company, as part of a strategy to achieve this, has maintained existing logistics, buying centres and storage capacity that can handle more than half of the national cocoa production, a statement from PBC said on Tuesday.

The statement signed in Accra by Mr E. Owusu Boakye, Managing Director, on the company's financial results as at September 30, 2002 said cocoa purchases for 2001-2002 season totalled 136,906 tonnes, representing 41.9 per cent of the market share.

The statement said PBC also made a slight recovery of its lost market share as a result of improved recycling rate and availability of short-term credit attributed to renewed confidence in the company by the financial market.

The Company registered a net profit before tax of 10.335 billion cedis indicating an 80.6 per cent improvement over the previous year's 5.723 billion cedis.

According to the statement, an improvement in cocoa delivery rate to the ports brought about a reduction in the cost of borrowing to minimise the general operating costs thereby resulting in the improved performance.

To achieve more profitability, therefore, the company intends to expand its sources of seed fund guarantee to ensure adequate and timely receipt of such funds for cocoa purchases.

"Steps are being taken to access needed working capital to buy more cocoa to utilise full capacity," the statement said.

"It is expected that with the proper implementation of these strategies the company will be firmly put on the path of profitability," the statement said.

Earnings per share for the year in review based on consolidated operating profit attributable to members of the company after the deductions for preference dividends is 14 cedis.