Business
Palm oil makers record outstanding H1, as revenue jumps by N18.1bn
Top players in the Nigerian Palm oil industry, Okomu Oil Palm Company and Presco PLC has announced their audited half-year financial results ended June 30, 2021, showing remarkable performance across major metrics.
The two largest players in Nigeria’s oil palm space collectively recorded a revenue increase of 67 percent in the first half of 2021 to N45 billion, up from N26.9 billion in the same time in 2020.
This impressive performance, once again reflects more patronage of locally made palm oil following the ban placed on accessing forex for palm oil importation into the country.
Presco for instance grew its revenue for the period by 59.4 percent to N21.4 billion, as against N13.4 billion reported in June 2020.
Also its gross profit grew by 79 percent to N16.5 billion in the period under review from N9 billion in 2020, while Its profit before tax improved by 130 percent moving to N12.9 billion from N5.7 billion in the same period of 2020.
Presco profit for the period also grew to N10.1 billion from N4.39 billion in corresponding period of 2020.
Okumu oil also performed really well in the first half of the year achieving revenue growth of 74.6 percent to N23.6 billion from N13.5 billion in the same period of 2020.
This was primarily due to local sales, which accounted for the majority of company income with N21.3 billion, while export sales accounted for only N2.2 billion.
READ ALSO: Palm oil laden truck kills 10, injures 36 in Osun
Also, Okumu Oil gross profit grew by 74.1 percent to N21.6 billion in the period under review from N12.4 billion in 2020, while its profit before tax improved by 125.4 percent moving to N12.4 billion from N5.5 billion in the same period of 2020.
The firm also recorded profit after tax of N9.5 billion, representing a 137 percent increase from the N4 billion achieved in the corresponding period of 2020
PricewaterhouseCoopers (PwC) in its Palm Oil report, had ranked Nigeria as the fifth world’s top palm oil-producing countries, and also the largest user of palm oil in Africa
According to PWC, demand for palm oil is majorly driven by household consumption, with the food industry accounting for 90% of palm oil consumption and the non-food industry accounting for 10%.
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