Rating Release
Agusto & Co hereby assigns a “Bbb” rating to Premium Cocoa Products (Ile-Oluju) Limited (“Premium Cocoa,” “PCPIL” or “the Company”) with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co hereby assigns a “Bbb” rating to Premium Cocoa Products (Ile-Oluju) Limited (“Premium Cocoa,” “PCPIL” or “the Company”). The rating reflects the Company’s good profitability metrics, supported by elevated global cocoa prices and an optimised product mix, as well as its healthy cash flow and adequate working capital. The rating also considers ongoing investments in upgrading its processing plant to enhance operational efficiency, the sustained domestic and international demand for processed cocoa products and the Company’s dollar-denominated revenue base, which provides a natural hedge against foreign exchange risk. However, the rating is tempered by the Company’s limited financial records as proper financial reporting started in 2023 following the acquisition by Johnvents Industries Limited. This is in addition to concerns over PCPCIL’s elevated debt profile, concentrated ownership structure and exposure to commodity price volatility inherent in the cocoa market.
Premium Cocoa was originally incorporated in 1980 as Cocoa Products (Ile-Oluji) Limited and commenced operations in 1984. The Company is one of Nigeria’s pioneer cocoa processing firms, established by the Federal Government of Nigeria. In January 2023, the Company was fully acquired by Johnvents Industries Limited and subsequently rebranded as Premium Cocoa Products (Ile-Oluji) Limited. The Company is engaged in the production of semi-processed cocoa products, including cocoa powder, cocoa cake and cocoa butter, which are sold to both domestic and international markets. Its processing facility has an installed capacity of 30,000 metric tonnes per annum, with utilisation rate currently at 30%. An upgrade of the facility is ongoing to increase capacity utilisation to 90% by the second quarter of 2026.
