Barbados conglomerate Goddard Enterprises Limited has launched an investigation into the circumstances which led to a BD$39.7 million loss on cocoa futures.

Subsequent to the revelation of the loss, the group’s newest director, Matthew Goddard, resigned from the board on March 7, 2025.

According to Barbados media outlet NationNews, in a report filed on July 15, 2025, the loss stems from the operations of GEL subsidiary Ecuador Kakao Processing Precuakao SA, otherwise known as Ecuakao. GEL has owned and operated the Ecuador-based company since 2018.

A previous article from NationNews dated February 18, 2025, reported that the loss was disclosed in GEL’s first quarter report, the period ending December 31, 2024.

The February article, quoting GEL Chairman Charles Herbert and Managing Director Anthony Ali, noted, “The manufacturing division was plagued with inefficiencies during the quarter; however, the division exceeded its target set as Ecuador Kakao Processing Proecuakao S.A. (Ecuakao) posted an operating profit in comparison to a loss in the comparative period.” 

They further explained that “included within the cash flow hedge in the Statement of Comprehensive Income at the end of December, is an unrealised mark to market loss of [BD]$29 million related to unmatched cocoa futures”.

“The board has subsequently taken a decision to cap this loss at a cost of [BD]$9.7m. This means that our maximum loss from this exposure is [BD}$38.7 million; however, if there is a decline in the market price of cocoa beans, the loss will consequently decline,” Herbert and Ali said.

In addition, the directors shared that an independent review committee was appointed to work with external consultants in making recommendations to avoid another such occurrence.

According to the July 15 NationNews article, “The independent members of the audit and risk committee of GEL have engaged external consultants, PricewaterhouseCoopers Caribbean, to investigate what transpired and to establish a strategy to mitigate its recurrence. The review has begun, and a report is expected within four to six weeks.”

Clarity for Goddard’s resignation

Herbert, GEL’s chairman, in an April 7 statement, advised shareholders of director Goddard’s resignation from the board a month earlier, on March 7.

“Mr Goddard indicated that his decision was due to his concern with the current decision-making of the board with respect to the independent investigation into the losses at Ecuakao. We thank Mr Goddard for his contribution to the board and wish him well,” he said.

On May 9, the chairman again reached out to shareholders to clarify Goddard’s reason for resigning, quoting from the latter’s letter of resignation.

“I hereby tender my resignation as a member of the board of directors of Goddard Enterprises Limited, effective immediately, due to my concern with the current decision-making of the board with respect to the independent investigation into the losses at the company’s subsidiary, Ecuakao Group Ltd, which was communicated to shareholders at the company’s last shareholder annual general meeting,” Goddard wrote.

“I also hereby release the company from any claim which I may have as a director to any claim for compensation,” he added.

The chairman also expressed his apologies for any confusion caused.

Goddard, born in Barbados, lives in Canada. He was elected as a GEL director at the entity’s annual general meeting in January. He is managing director and global head of ETF and futures trading, head of crypto and digital currency opportunities at BMO Capital Markets.