Okomu Oil Palm Half-Year Net Profit Soars By 76.57%, Offers N7.00 Interim Dividend

Okomu Oil Palm Plc, on Monday, released its unaudited financials for the six months ended June 30, 2022, showing growth in key measurement parameters for the period, with the possibility of increased dividend payout by year-end.

According to the report presented through the Nigerian Exchange Limited, gross earnings jumped by 72.5% from N23.626bn to N40.757bn; a breakdown of which showed that local sales accounted for N37.883bn, up from N21.342bn in the corresponding period of last year; while export sales contributed a flat N2.873bn, compared to N2.283bn. Cost of sales jumped by N7.743bn or 398.68% from N1.941bn in the first half of the 2021 financial year to N9.684bn, with oil palm cost growing from N1.767bn to N7.918bn; just as rubber cost soared from N174.7775m to N1.765bn; resulting in gross profit of N31.072bn, up from N21.684bn.

Net operating expenses dropped to N7.337bn from N9.158bn; following which profit from continuing operations before tax changes in fair value stood at N23.735bn from N12.526bn. Finance income jumped from N3.664m to N54.023m the bulk of which was the exchange gain of N51.52m, up from N0.865m. Finance costs soared from N80.802m to N357.964m, with interest on long-term loans rose from N31.149m to N319.373m. Profit on continuing operation before tax stood at N23.431bn from N12.449bn representing a 99.09%; tax expense grew from N2.913bn to N6.593bn; resulting in a profit after tax of N16.837bn, from N9.535bn, representing a 76.57% growth over the period.

The directors have therefore proposed an interim dividend of N7.00 for every 50 kobo ordinary share to shareholders whose names appear on the register of members as of close of business on August 22, 2022, while electronic payment is scheduled for August 29.