Despite the country’s macroeconomic headwinds, two agro-based firms listed on the Nigerian Exchange Limited (NGX), Presco Plc and Okomuoil, have posted a combined revenue of N328 billion in the 12 months ending on December 31, representing 84.4 per cent increase above N176 billion achieved in the corresponding period in 2023.

Similarly, the two firms, with a combined market capitalisation of N1.3 trillion, achieved a profit before tax (PBT) of N180 billion, an increase of 125 per cent when compared to N80 billion recorded in 2023.

While many consumer goods companies struggled with losses, the two agro-based giants reported significant growth in both top and bottom lines.

Data from the showed that Presco’s total revenue for the 12 months hit N198.1 billion, a 93.48 per cent increase from N102.4 billion recorded in the previous year.

The company’s PBT soared by 156 per cent to N128 billion from N50 billion posted in 2023, with the fourth quarter alone seeing an impressive N60.9 billion, up by 233.46 per cent from the N18.2 billion recorded the previous year.

For Okomu oil, its revenue surged by 73.4 per cent to N130.06 billion, compared to N75.1 billion in the previous year while PBT stood at N52.05 billion, representing a 58 per cent increase from the N32.85 billion recorded in 2023.

Based on the improved performance, their stock prices have continued to rally on the exchange with impressive year-to-date capital appreciation.

For instance, Presco with a market capitalisation of N785 billion, closed its trading on Monday at N785, representing a 65.3 per cent gain from N475 at which it began trading in January 2025.

Also, Okomu Oil which began the year with a share price of N444 has since gained 20.7 per cent on that price valuation to close at N536 yesterday. The company’s market capitalisation stood at N511 billion.

The performance of Presco and Okomu Oil was driven by key economic and industry factors. The naira’s devaluation significantly increased the export value of palm oil, while the CBN’s forex policy adjustments allowed exporters to maximise foreign earnings.

Government-backed incentives, including the Anchor Borrowers’ Programme (ABP) and tax breaks for agro-processors, provided financial support, while reduced import dependency helped optimize costs.

Also, surging global demand for crude palm oil (CPO) fueled revenue growth, with strong export demand from Europe and Asia.

In addition, strategic investments in automation expanded plantation capacity, and improved yield management enhanced efficiency and output, while localised sourcing and renewable energy integration helped control costs.

Unlike consumer goods firms grappling with inflationary pressures, these agro-based companies thrived on rising commodity prices and minimal FX exposure.

Expansion into value-added palm oil derivatives also created new revenue streams, positioning them for sustained growth despite economic uncertainties.

However, challenges such as logistics costs, security issues in farmlands and potential policy shifts could influence future performance.

However, analysts believe that with continued government focus on agriculture-led economic diversification, rising global palm oil prices and further FX liberalisation, Presco and Okomu Oil may be in for sustained growth this year.


https://guardian.ng/business-services/business/presco-okomu-grow-revenue-by-84-amid-harsh-economic-conditions/