The combined profit of Presco Plc and Okomu Oil Palm Company Plc soared by 94.32% in the first quarter of 2024 amidst economic fluctuations. The surge is attributed to inflationary pressures and the Naira’s depreciation, leading to a substantial increase in agricultural product prices.
Presco and Okomu reported after-tax profits of N39.135 billion, up from N20.139 billion in Q1 2023. Their revenue skyrocketed to N80.027 billion from N46.122 billion, with Okomu recording N43.482 billion in total revenue, while Presco’s revenue hit N42.545 billion, fueled by a 94.13% and 115.91% growth in sales revenue, respectively.
The spike in profits aligns with Nigeria’s food inflation rate reaching 40.66% in May 2024, highlighting a significant surge in food prices, driven by factors like the depreciation of the Naira. Despite challenges, the palm oil industry thrives, dominated by players like Presco and Okomu, though the sector faces challenges such as over-dependence on oil and gas revenue and the need for improved production and quality.
Source: Business Day