Nigeria’s leading palm oil producer, Presco Plc, has released its interim financial statements for the 12 months ending 31 December 2022. The company recorded a pre-tax profit of N27.6 billion, representing a 4.76 increase from the N26.3 billion recorded in 2021. The company recorded a gross profit of N35.4 billion, up from the N28.9 billion recorded in 2021, representing a 22.5% increase. The company was able to pay out a dividend of N2.147 per share.
Breakdown
The company recorded a revenue of N83 billion in 2022, up by 75% from the N47.4 billion recorded in 2021. The company also recorded a cost of sales of N34.7 billion, representing a 121.9% increase from the N15.6 billion cost of sales incurred in 2021. The outcome was a gross profit of N48.2 billion in 2022 against the N31.7 billion gross profit recorded in 2021.
With a tax expense of N6.1 billion, the company’s Profit After Tax (PAT) stood at N21.465 billion, up by 11.1% from the N19.3 billion PAT recorded in 2021.
Also Read: Big Oil Profits Double, Hit $219 Billion in 2022
The company recorded administrative expenses of N17 billion and selling and distribution expenses of N1.688 billion.
2022 saw Presco’s revenue hit its highest figure in about 10 years. The impressive performance is occurring against the backdrop of palm oil prices reaching an all-time high in 2022 due to the Russian invasion of Ukraine. Despite its impressive revenue performance, the profit margin that the company would have earned was significantly reduced by the combination of high inflation rates and soaring fertilizer prices in 2022.
About Presco Plc
Presco is a fully-integrated agro-industrial company that encompasses oil palm plantations, a palm oil mill, a palm kernel crushing facility, as well as a vegetable oil refining and fractionation plant. Presco focuses on cultivating oil palms and transforming crude oil through refining and fractionation processes into final products.
Also Read: African Fintechs Raise $913 Million in 2022 – Olaniwun Ajayi 2023 Fintech Outlook
The company is presently operational from four farm estates namely: Obaretin Estate, Ologbo Estate, and Sakponba Estate in Edo State and Cowan Estate in Delta State, which all cover about 23,628 hectares of land.
The company became a public limited liability company in February 2002 with SIAT Group holding a 60% stake while the public held the remaining 40% stake.
