United Cacao widens losses, expects profitability in four years

United Cacao has posted a $1.86m (£1.2m) loss for the six months to 30 June, but its chief executive remained upbeat and said it expected to turn a profit in three to four years.

The AIM-listed cacao plantation company based in Peru released its half year update on Tuesday.

It reported the group’s consolidated loss nearly doubled from $1.08m (£0.71m) in the same period last year.

By the end of the year 2015, the company expects to have a planted area of 1,950 hectares, and increase that to 3,000 ha by the end of 2016.

By planting approximately 250 ha per annum, United Cacao believes it will achieve net income profitability in 2019.

Despite the financial result, chief executive Dennis Melka is remaining upbeat.

"We are now the largest cacao estate in Peru, which is the global low-cost location for the production of cacao, and by year-end, we expect to be the largest cacao estate in Latin America.

“Whilst the global chocolate confectionary market continues to grow, the three main cacao producing countries, Cote d'Ivoire, Ghana and Indonesia, are all now experiencing a contraction in production, thereby providing a significant opportunity for the company.”