The Okomu Oil Palm Company Plc reported a pre-tax profit of N87.3 billion for the year ending December 31, 2025, as per its recently released unaudited financial statements.
This marks a 63.64% increase from the N53.3 billion recorded in 2024. However, fourth-quarter pre-tax profit dropped to N3.2 billion, compared to N12.5 billion in the same period last year.
The Okomu Oil Palm company’s strong performance was driven by revenue growth, with turnover from oil palm and rubber products rising 52.35% year-on-year (YoY) to N198.1 billion.
Earnings per share (EPS) also improved significantly, climbing to N66.60 from N41.89 in 2024. This reflects stronger profitability and better returns for shareholders.
Key Financial Highlights:
- Revenue: N198.1 billion (+52.35% YoY)
- Gross Profit: N139.5 billion (+71.09% YoY)
- Operating Profit: N90.03 billion (+81.77% YoY)
- Pre-tax Profit: N87.3 billion (+63.64% YoY)
- Profit After Tax: N63.5 billion (+59% YoY)
- Earnings Per Share (EPS): N66.60 (vs. N41.89 in 2024)
- Fixed Assets: N81.5 billion (up from N67.7 billion)
- Revenue Reserves: N54.5 billion (up from N53.9 billion)
Performance Drivers:
A detailed review of the unaudited results shows that the N198.1 billion full-year revenue was primarily driven by local sales of palm and rubber products, which surged 60.53% to N172.6 billion.
Export sales contributed the remaining revenue, increasing from N22.5 billion to N25.5 billion during the year.
Cost management also played a key role, as the cost of sales rose at a slower pace to N58.5 billion (from N48.4 billion). This supported a 71.09% YoY increase in gross profit to N139.5 billion.
Operating profit grew 81.77% to N90.03 billion, despite operating expenses of N49.5 billion. After factoring in finance income of N11.07 billion and finance costs of N13.7 billion, pre-tax profit rose to N87.3 billion. A tax charge of N23.7 billion resulted in a profit after tax of N63.5 billion.
Balance Sheet Overview:
- Fixed Assets: Expanded 20.34% to N81.5 billion.
- Current Assets: Increased 4.09% to N41.6 billion, supported by cash holdings of N12.9 billion and inventory of N20.7 billion.
- Total Equity: Stood at N56 billion, slightly above the N55.4 billion recorded in 2024. Revenue reserves accounted for 97.3% of shareholders’ funds.
Summary:
The Okomu Oil Palm Company Plc delivered a strong financial performance in 2025, driven by robust revenue growth, effective cost management, and improved profitability. Despite a decline in fourth-quarter pre-tax profit, the company’s full-year results highlight its ability to generate value for shareholders while maintaining a solid balance sheet.
