Nigeria’s largest oil palm maker hands shareholders with record gains

Presco Plc, Nigeria’s largest palm oil producer, delivered a remarkable financial performance in 2024, reinforcing its market leadership and rewarding shareholders with record gains.

Despite a challenging macroeconomic environment, the company posted triple-digit growth across key financial metrics, driven by operational efficiency and strategic expansion.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 125.2 percent to N119.1 billion, up from N52.9 billion in 2023. Profit before tax (PBT) also surged by 128.7 percent, reaching N113.2 billion compared to N49.5 billion in the previous year.

The oil palm maker reported a 140.4 percent increase in its earnings in the fiscal year 2024 due to the consolidation of Ghana Oil Palm Development Company (GOPDC) following Presco’s acquisition of a 52.0 percent controlling stake.

Its after-tax profit rose to N77.7 billion as of December 2024 from N32.3 billion as of December 2024.

CardinalStone Research in a note disclosed that earnings growth was driven by strong topline performance, a surge in gains on biological asset revaluation, and the impact of a partial consolidation of GOPDC.

This development comes as the company acquired a 100 percent interest in Siat Nigeria Limited in 2021 and a 52 percent interest in GOPDC Limited in 2024.

However, on 2 January 2025, Presco concluded a 48 percent acquisition of GOPDC. This will allow for a 100 percent take-over of GOPDC from Siat N.V. which holds 60 percent of the shares in Presco Plc.

Data from the audited financials show that revenue more than doubled to N207.5 billion, representing a 102.6 percent year-on-year growth, largely fueled by a 72.8 percent increase in its Nigerian operations to N177.0 billion, supported by rising prices of CPO and refined products and an uptick in volumes.

“The topline was further boosted by the consolidation of GOPDC following PRESCO’s acquisition of a 52.0 percent controlling stake. The Ghanaian entity contributed N30.5 billion to revenue, covering the four months from 30 August to 31 December 2024,” the analysts said.

The cost of sales increased by 72.9 percent to N65.5 billion while OPEX also grew by 42.5 percent YoY, reflecting inflationary pressures and the consolidation of GOPDC’s operational costs.

The company recorded a 136.9 percent increase in gains in biological assets (N29.0 billion) and a 24.7 percent YoY increase in Exchange gains (N5.5 billion), which offset cost growth.

In a year marked by volatility in the Nigerian economy, Presco’s share price rose by an impressive 146 percent, delivering strong capital appreciation to investors. To cap the year, the board declared a final dividend of N42 per share for the 2024 financial year—one of the highest in the sector—underscoring the company’s commitment to value creation.

“We are deeply grateful for the continued trust of our investors, business community and dedicated workforce, who have been instrumental in achieving these exceptional results,” said Reji George, managing director and CEO of Presco Plc.

“Against macroeconomic factors faced during the financial year under review, we remained undeterred in our strategic focus, resilience, and organizational efforts. This approach has led to remarkable growth across our operations.”

Tags: palm oil, Nigeria, Market, gains, Presco Plc