Profit at Nigeria’s biggest palm oil producer, Presco Plc, surged to its highest in at least a decade, reflecting strong operational efficiency, improved agricultural yields and resilient market demand across its product portfolio.
Profit after tax surged by 114 percent to N110.8 billion between January to September this year, compared to N51.8 billion recorded last year. That’s equally 42.4 percent higher than the total income posted in the full year of 2024.
Revenue at the Edo-based palm oil maker rose 113.5 percent to N274.5 billion, up from N128.6 billion in the corresponding period last year as the newfound stability of the naira and cooling inflation fuel an impressive rise in earnings.
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The naira has traded below 1500 per dollar in the past weeks to settle at N1463.33 on Wednesday at the Nigerian Foreign Exchange Market while consumer prices have equally moderated to 18.02 percent, the sixth consecutive drop this year and the lowest it’s been in three years.
The improving macros lifted gross profit by 118.5 percent to N202.1 billion, while operating profit increased by 121.5 percent to N166.0 billion. EBITDA also rose by 118.1 percent to N170.9 billion, reflecting continued operational strength and cost management discipline.
On the strength of this performance, the Board of Directors of Presco approved an additional interim dividend of N10 per share, reflecting confidence in Presco’s fundamentals and a commitment to rewarding shareholders.
Earnings per share rose by 114.0 percent year-on-year to N110.79, reinforcing Presco’s consistent commitment to delivering superior shareholder value.
“Presco’s Nine-Month Year to Date performance reflects not just strong numbers, but the strength of our model in an evolving Nigeria,” Reji George, managing director of Presco said.
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“As the country navigates new economic realities, our consistency and focus continue to stand out. We have stayed disciplined in execution, translating efficiency and innovation into real, measurable growth.“
As crude palm oil prices continue to rally and domestic macroeconomic conditions hold pace for further recovery, Nigeria’s palm oil makers stand as key beneficiaries given that Benchmark Malaysian CPO averaged $1,009.08 per metric tonne in the third quarter, up 7.5 percent from the previous period, supported by higher export duties in Malaysia and Indonesia’s B40 biodiesel mandate, which diverted a large share of output into domestic consumption.
Shares of Presco have gained 212 percent this year to close trading on Wednesday at N1,479.90, ranking it 16th on the NGX in terms of year-to-date performance.