Two of the Agro-based companies listed on the Nigerian Exchange (NGX), Okomu Oil and Presco Plc have reported yet another period of profitability growth in the first half of 2024.
This development continues to solidify their impressive performance in 2023, where they achieved some of the highest profitability growth and return on equity (ROE) in Nigeria.
Their 2024 financial statements reveal significant revenue growth and substantial pre-tax profits. Both companies also maintained robust balance sheets, expanded their net assets, and effectively managed their loans.
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Both companies achieved gross profit values that surpassed their first-half 2023 figures.
Presco announced a gross profit of N65 billion, a 105% increase compared to the same period in 2023.
Similarly, Okomu Oil’s gross profits climbed by 50% to N44 billion in 2024.
In terms of revenue, Presco recorded the highest revenue at N88 billion in the first half of 2024, representing a N40bn year-over-year increase from N48 billion in the previous year.
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Okomu Oil also saw a substantial revenue increase of N35bn year-over-year growth, rising from N40 billion in 2023 to N75 billion in 2024.
The performance of these companies is even more remarkable when considering the challenges posed by inflation and currency depreciation.
While many consumer goods companies struggled with losses, these two agro-based giants reported significant growth in their bottom lines.
Both companies achieved gross profit values that surpassed their first-half 2023 figures. Presco announced a gross profit of N65 billion, a 105% increase compared to the same period in 2023.
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Presco’s pre-tax profit surged by 157%, from N15 billion in the first half of 2023 to N38 billion in the first half of 2024.
Okomu Oil’s pre-tax profit also increased, rising by 27% to N29 billion during the same period.
Earnings per share (EPS) for Presco and Okomu Oil increased by 157% and 24%, respectively.
In the 2023 annual report, Okomu Oil’s Chairman, Mr. Gbenga Oyebode, attributed the company’s revenue and pre-tax profit growth to “an inflation-driven increase in the price of products that the company sells.”
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He noted that the prices of crude palm oil (CPO) rose by 22% year-over-year, while rubber prices saw a 28% increase.
Similarly, Presco’s Chairman, Mr. Olakanmi Rasheed Sarumi, attributed their revenue growth to the expansion of the company’s operational capacity.
He stated, “In 2023, we sold 105,000 tons of crude and refined products, compared to 91,400 tons in 2022.”
Both leaders highlighted their companies’ resilience despite the challenging business environment, characterized by rising energy costs and inflation.
