Presco Plc has reported a strong start to the 2026 financial year, posting higher revenue and improved gross profit for the first quarter ended March 31, despite ongoing foreign exchange volatility and macroeconomic pressures in Nigeria.
According to the company’s unaudited interim consolidated and separate financial statements, revenue rose to ₦100.86 billion in Q1 2026, representing a 7.5% increase from ₦93.79 billion recorded in the corresponding period of 2025.
The performance was largely driven by sustained demand for palm oil products, pricing resilience, and continued efficiency across its vertically integrated operations, which span oil palm cultivation, milling, refining, and downstream consumer products.
Gross profit climbed to ₦91.29 billion, up from ₦83.72 billion a year earlier, translating to an impressive gross margin of approximately 90.5%. The result underscores Presco’s strong cost structure and pricing power in Nigeria’s edible oils market, where domestic producers continue to benefit from supply gaps and import substitution trends.
Industry Challenges Persist
However, despite the solid top-line showing, the company still faces broader operating challenges, including exchange-rate fluctuations, rising logistics costs, inflationary pressure, and elevated financing expenses affecting many Nigerian corporates.
Nigeria’s palm oil market has experienced growing structural demand from food manufacturers, consumer goods companies, and households, while local production continues to lag consumption levels. This has created favorable pricing dynamics for established domestic players with scalable operations.
Presco has in recent years expanded plantation acreage, processing capacity, and refining capabilities, positioning itself to capitalize on rising demand for crude palm oil, specialty fats, and related products.
