Half year results of Okomu Oil Plc was recently made available to the investing public and the numbers beat expectations. As the company posted a strong bottom-line growth of 135.4% year-on-year (y/y), supported by an impressive topline performance, which helped offset cost pressures.
A close analysis of the report shows that Turnover (TO) climbed by +73.1% y/y to ₦129.83 billion, amid improvement in crude palm oil (CPO) production and sales, which returned +66.4% y/y growth, benefitting from rising palm oil prices and relative foreign exchange (FX) stability in the period under review.
Debilitating inflationary pressure and FX stability helped softened cost related items, as cost of goods sold (COGS) and operating expenses (OPEX) increased relatively lower than the TO’s growth at 40.8% and 32.0%, respectively. This led to a bossy EBIT margin of 52.7%, compared to 40.7% achieved in 6M ‘24.
Down on the funding point, Net finance costs of ₦1.35 billion were posted, compared to ₦1.22 billion in 6M ’24, as FX losses rose higher compared to gains in the period. Note: the impact of FX movements on Net finance costs was muted compared to the prior period, with both gains and losses narrowing substantially, due to the relative naira stability.
Accordingly, pre-tax profit rose by 129.1% y/y to ₦129.08 billion. Effective tax rate for the period dropped to 29.1%, compared to 31.0% in 6M ’24, pushing post-tax profit (PAT) up by 135.4% y/y to ₦47.53 billion. In summary, computed earning per share (EPS) settled at ₦49.83 kobo, compared to ₦21.17 kobo achieved in 6M ‘24.
Interim dividend for shareholders’ reward
The Board of Directors has recommended an interim dividend of ₦30.00 per share for the benefit of its shareholders. The qualification and closure dates are on the 8th and 11th of August 2025, respectively.
Kindly see the table below for detailed earnings’ highlights.
Source: Okomu OilPalm Company Plc UFS 6M-25 Data,
For the stand-alone three months ended 30 June 2025 (Q2 ’25) performance, that is, period from 1st of April to 30th of June 2025, kindly see the below highlights for a guide.
Source: Okomu OilPalm Company Plc UFS 6M-25 Data,
Brief about Okomu Oil Plam Company Plc:
Okomu Oil Palm Company Plc’s principal activities are the cultivation of oil palm, processing of fresh fruit bunches (FFB) into crude palm oil (CPO) for resale, rubber plantation, and processing of rubber lumps to rubber cake for export. The CPO is sold locally to industrial off-takers while the rubber cakes are sold in the international market. The company’s shares are 66.38% owned by Socfinaf S.A, which is incorporated under the laws of Luxembourg, and 33.62% by a diversified spread of Nigerian and international individuals and institutional shareholders.
