logoBC
Yaoundé - 28 May 2022 -
Agriculture

Cameroon: Sodecoton boosts equity by XAF29 bln in 2021 by shipping 2020 stock leftovers

Cameroon: Sodecoton boosts equity by XAF29 bln in 2021 by shipping 2020 stock leftovers
  • Comments   -   Monday, 24 January 2022 15:03

(Business in Cameroon) - In the first half of February 2021, cotton development firm SODECOTON, an agribusiness giant operating in the three northern regions, finally shipped its stock of remaining cotton from the 2020 season.  The 30,975 tons of cotton estimated at some XAF29 billion was not shipped during the 2020 campaign because of disruption in the international supply chain caused by restrictions issued to combat the spread of the coronavirus pandemic.  

"The delays have been fully regularized. The situation caused a decline in the company’s 2020 revenues. It is not a loss as some people may have thought. The deferred receipts will be taken into account for the 2021 results. Hence, SODECOTON’s result for the 2021 fiscal year will be higher than usual (over XAF150 billion)," explains an executive of this joint-stock agro-industrial unit. 

"Sodecoton has always sold its cotton under a forward contract, meaning the sold cotton can be shipped later, even after 12 or 14 months. The company is paid once the cotton is loaded on the ships taking it to its final destination.  When this deferred shipment is delivered during a new campaign, it does not mean the cotton was not sold during the previous campaign or that the company recorded losses. It is just a delay in shipments and payments,” the same source explains. 

SODECOTON supervises over 200,000 cotton farmers in the northern part of Cameroon. It is highly important for the region's economy. Sodecoton, which also produces refined oil and soymeal for farmers, is 59% controlled by the State of Cameroon, against 30% for the French firm Geocoton and 11% by Smic, a local company.

 

BRM 

international-air-traffic-drops-by-62-in-cameroon-due-to-covid-19
The international air traffic in Cameroon fell by 62.04% from 868,788 to 357,564 passengers between 2019 and 2020. Domestic traffic also followed the same...
emile-parfait-simb-promoter-of-liyeplimal-arrested-for-cryptocurrency-scam
Emile Parfait Simb, the promoter of Global Investment Trading (better known as Liyeplimal), which specializes in cryptocurrency investments, was arrested...
cameroon-govt-completes-fundraising-for-automatic-toll-booth-project-launches-work
The Cameroonian government announced, via its Ministry of public work, (Mintp) that it has finally completed the fundraising for the construction of 14...
british-epc-joins-the-kribi-bitumen-plant-project
The British consulting firm Euro Petroleum Consultants (EPC), which specializes in petroleum and petrochemical projects, has just signed a "Project...

Mags frontpage


Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer


Albert Zeufack: “Today, the most important market is in Asia”


Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir


Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »