Okomu Oil Palm Company recorded a 63.6 per cent improvement in net profit last year, compared to 2024, helped by a surge in domestic sales, according to its latest unaudited earnings report issued on Friday.
Revenue for the agro-processing company, whose activities encompass oil palm plantation development, palm oil milling, palm kernel processing and rubber plantation development, climbed more than half up to N198.2 billion, with exports contributing 12.9 per cent.
Price surges in the global crude palm oil market during 2025, aided by growing demand, had brightened the prospects of earnings boost for Nigerian oil palm companies, with Cardinalstone projecting last October that the firm would sustain strong earnings momentum into full year 2026.
“Following two years of exceptional top line expansion driven by macroeconomic volatility and inflation pass-through, growth is expected to stabilise over the medium term as operating conditions normalise,” the investment management firm said in a research report.
“Growth will likely stem from increasing utilisation rates, better yields, and smallholder integration due to limited room for plantation expansion,” it added.
In the period under review, finance income for Okomu Oil eased by 20.4 per cent to N11.1 billion on drop in exchange gain. Finance costs rose to N13.8 billion from N10.1 billion.
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Like its biggest rival Presco, Okomu Oil last October announced a special dividend of N10 per share, translating into a payout of N9.5 billion after its net profit for the first nine months of the year more than doubled to N60.3 billion. Prior to that, the company had declared an interim dividend of N30 per year, equivalent to a payout of N28.6 billion, following the release of its half year result.
Profit before tax for 2025 stood at N87.3 billion, up from N53.4 billion, while profit after tax leapt to N63.5 billion from N40 billion.
Net profit ratio, which indicates how much of revenue has been turned into after-tax profit, stood at 32.1 per cent, up from 30.7 per cent a year ago.
