Presco Plc reported an 8.5% increase in group profit before tax (PBT) to N151.5 billion for the nine months ended September 30, 2026, supported by lower finance costs, improved cost management and stronger revenue from its Nigerian operations.
The palm oil producer disclosed this in its nine-month unaudited financial results released on Friday, October 30, 2026.
The performance came despite inflationary pressures, geopolitical uncertainties and declining edible oil prices, which have weighed on the broader industry.
At the standalone level, Presco’s profit before tax increased by 12.7% to N96.9 billion, while profit after tax rose 11.9% to N68.7 billion, reflecting improved profitability across its operations.
The company also recorded significant improvements in its cost structure. Standalone cost of sales declined by 6.2% to N46.2 billion, while group gross profit stood at N202.8 billion, with gross margins exceeding 73%.
Borrowings Fall 57%
A major highlight of the results was Presco’s reduction in debt, with total group borrowings falling by approximately 57% to N137.1 billion.
This represented a reduction of N180.2 billion, while total group liabilities declined by 42.4% to N278.2 billion.
The improved balance sheet position also translated into lower financing expenses. Group finance costs dropped by 34.5% to N19.6 billion from N30 billion in the corresponding period of 2025.
Presco’s shareholders’ equity increased by 10.1% to N487.3 billion, while retained earnings rose to N253.5 billion. The company also maintained a cash balance of N135.2 billion.
Nigeria Remains Dominant Market
Nigeria remained the company’s dominant market, with revenue from domestic operations increasing by 12.7% to N222 billion.
The company also reported significant revenue and profit growth from its SNL subsidiary, although it did not disclose the subsidiary’s specific figures in the announcement.
Presco’s integrated business model, which spans oil palm plantations, processing facilities and distribution, continues to support its position in Nigeria’s edible oil industry.
Looking ahead, Presco expects additional production capacity from its recently acquired Saro Oil Palm Limited plantation.
Production of Fresh Fruit Bunches (FFB) from the plantation is expected to commence in the fourth quarter of 2026, providing an additional source of raw materials for its processing operations.
The development is expected to strengthen the company’s production capacity and support future revenue and profitability growth.
Commenting on the results, Managing Director and Chief Executive Officer, Reji George, said the company’s integrated operations had remained resilient despite prevailing economic challenges.
He attributed the performance to disciplined cost management, improved productivity across plantations and processing facilities, and strategic investments.
George said the company would continue to focus on operational efficiency, expanding productive capacity and sustainability as it approaches the end of 2026.
