Profits at Nigeria's largest palm oil producer, Presco Plc, have reached their highest level in at least a decade, reflecting strong operating efficiency, improved farm yields and resilient market demand across its product portfolio.
Profit after tax increased by 114 per cent to N110.8 billion between January and September this year compared to N51.8 billion recorded last year. This is equivalently 42.4 per cent higher than the total income posted for the full year of 2024.
Revenue of the Edo-based palm oil producer rose by 113.5 per cent to N274.5 billion, up from N128.6 billion in the same period last year, as the new stability of the Naira and decline in inflation led to an impressive increase in earnings.
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The naira has traded below 1500 per dollar in the past weeks at the Nigerian foreign exchange market and settled at N1463.33 on Wednesday, while consumer prices have similarly declined by 18.02 per cent, the sixth consecutive decline this year and the lowest in three years.
Gross profit increased by 118.5 per cent to N202.1 billion, driven by improvement in macros, while operating profit increased by 121.5 per cent to N166.0 billion. EBITDA also increased by 118.1 per cent to N170.9 billion, reflecting continued operating strength and cost management discipline.
On the strength of this performance, Presco's Board of Directors approved an additional interim dividend of N10 per share, reflecting confidence in Presco's fundamentals and commitment to rewarding shareholders.
Earnings per share increased by 114.0 per cent year-on-year to N110.79, reinforcing Presco’s continued commitment to delivering superior shareholder value.
“Presco’s nine-month performance so far reflects not only the strong numbers but also the strength of our model in a developing Nigeria,” said Presco Managing Director Reggie George.
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“As the country moves toward new economic realities, our consistency and focus continue to stand out. We have been disciplined in execution, translating efficiency and innovation into real, measurable growth.”
As crude palm oil prices continue to rise and domestic macroeconomic conditions gather pace for further improvement, Nigeria's palm oil producers stand as key beneficiaries, given that benchmark Malaysian CPO averaged $1,009.08 per metric tonne in the third quarter, up 7.5 per cent from the previous period, driven by higher export duties in Malaysia and Indonesia's B40 biodiesel. was supported by the mandate, which diverted a large portion of production domestically. consumption.
Presco shares have gained 212 per cent this year and closed at N1,479.90 at the close of trading on Wednesday, ranking it 16th on the NGX in terms of year-to-date performance.
