Oil palm giant, Presco Plc, has reported an astonishing 140 per cent surge in its post-tax profit, reaching N77.8 billion for the 2024 financial year, buoyed by its aggressive expansion into the Ghanaian market.
The company’s audited earnings report, released on Tuesday, shows revenue leaping by 102.6 per cent to an impressive N207.5 billion. Notably, its Ghanaian subsidiary, Ghana Oil Palm Development Company Limited (GOPDC), contributed N30.5 billion to the overall turnover, underscoring the success of its West African expansion drive.
Presco had acquired a controlling 60 per cent stake in GOPDC last August, with an ambitious plan to take over the Ghanaian enterprise fully. Payments for the deal were structured in phases, with the first instalment of $65 million announced in June last year. The move is part of Presco’s broader strategy to tap into Ghana’s booming palm oil market, where demand currently outpaces supply by nearly threefold.
Margin improvements followed suit, climbing to 37.5 per cent from the previous year’s 31.6 per cent. The company, which was acquired by Nigerian investor Oak and Saffron from Belgium’s Siat SA last year, is clearly reaping the rewards of its bold investment moves.
To finance its expansion plans, Presco kicked off the first tranche of a N150 billion bond programme in January, targeting N100 billion to support the full acquisition of GOPDC.
Presco also announced a significant boost to shareholder returns, with plans underway to increase dividend payouts by 42.1 per cent, raising the total disbursement to N42 billion.
Additionally, the company reported gains on the revaluation of its biological assets, which soared to N29 billion from N12.2 billion in the previous period, reflecting increased valuations amid growing market demand.
As Presco continues its aggressive push beyond Nigeria’s borders, investors are watching closely, with expectations high that the company will consolidate its dominance across the region’s palm oil sector.
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