Nigeria’s largest palm oil producer has extended its profitability momentum in the first three months of 2026, largely supported by stronger revenue and a significant drop in finance costs.
Net profit of the Edo-based edible oil maker increased to N49.25 billion in the first quarter of the year from N47.6 billion a year earlier, even as turnover grew 7.5 percent from N93.8 billion in the same period last year, driven largely by sales of crude and refined products.
Gross profit climbed to N91.3 billion from N83.7 billion, reflecting improved cost efficiency as the cost of sales declined slightly year-on-year.
Profit before tax rose 18 percent to N69.2 billion. The earnings growth came despite a sharp increase in tax expense, which nearly doubled to N20 billion.
Read also: Inside Presco, Okomu’s N202bn earnings spree
A key support for profitability was a significant drop in finance costs, which fell to N7.5 billion from N10.5 billion, alongside a surge in finance income to N5.1 billion from just N59 million in the prior year.
However, one of the biggest drags on the bottom line was an exchange loss of N6.4 billion, compared to a gain in the prior year. Meanwhile, foreign currency translation losses of N14.9 billion pushed total comprehensive income down to N34.3 billion from N47.6 billion.
This is despite the naira experiencing a rare stability in the reviewed period amid tension in the Middle East.
Operationally, Presco continued to strengthen its balance sheet by cutting debt. Total borrowings dropped sharply to N136.6 billion from N317.3 billion at the end of 2025, reflecting aggressive loan repayments during the quarter.
This deleveraging came at the cost of liquidity, with cash and cash equivalents falling to N136.5 billion from N262.6 billion at year-end, as the firm used cash flows to finance debt reduction and capital expenditure.
Read also: Presco’s profit soars to a record high despite weaker Q4
Inventories rose significantly to N58.9 billion from N40.1 billion, underscoring the seasonal nature of the company’s operations as it builds stock during peak production periods.
Despite the FX-related hit to comprehensive income, retained earnings increased to N225.3 billion, reinforcing the company’s earnings base and supporting equity growth to N477.1 billion.
Earnings per share declined to N42.22 from N47.58, reflecting changes in share count and broader income adjustments.
Record growth in 2025 FY as income hit N122bn
The year 2025 was one of operational expansion for Presco. It completed an oversubscribed rights issue, which more than doubled total equity, materially strengthening the balance sheet and providing capacity to fund the next phase of growth.
That same year, the company embarked on some strategic acquisitions, including the remaining 48 percent shareholding in Ghana Oil Palm Development Company Limited (GOPDC), bringing its ownership to 100 percent while strengthening Presco’s regional footprint in West Africa.
The acquisition of Nsadop Boki Palm Estate also came to fruition, effectively expanding the company’s plantation footprint and production capacity, and is expected to be a meaningful contributor to long-term value creation.
Read also: Presco’s rights issue draws 103% subscription on investor demand
“Presco is today stronger, larger, and better positioned than at any point in its history,” said Reji George, managing director and chief executive officer of Presco Plc.
“These results are the product of a deliberate focus on sustainable, long-term value creation. We have strengthened the balance sheet, scaled our operations, and deployed shareholder capital with discipline.”
On the financial front, Presco made some historic numbers in its 2025 audited results. Revenue rose 59.3 percent to N330.6 billion while gross profit increased by 70.6 percent to N242.2 billion. Operating profit surged to N214.9 billion, representing a 70.8 percent rise.
Net income reached a record high of N121.5 billion, a 56.1 percent growth. The company grew pre-tax profit by 57.1 percent to N177.9 billion. EBITDA rose to N211.8 billion. That’s a 64.1 percent margin.
The successful rights issue led to a more robust balance sheet as total equity more than doubled in one year to N442.7 billion, while the acquisitions meant total assets nearly doubled to N926 billion as current assets rose 178.8 percent, supporting liquidity and growth capacity.
“Our outlook for 2026 remains positive. Q1 has delivered revenue growth of 7.5%, PBT growth of 18.2%, and a PBT margin of 68.7%. The integration of Nsadop Boki is progressing in line with expectations, and we see a significant opportunity ahead,” Presco’s CEO said.