Despite Nigeria’s macroeconomic challenges, two agro-based firms listed on the Nigerian Exchange Limited (NGX), Presco Plc and Okomu Oil, have reported a combined revenue of N328 billion for the 12 months ending December 31, 2024. This represents an 84.4 percent increase from the N176 billion recorded in the corresponding period of 2023.
The two companies, with a combined market capitalization of N1.3 trillion, also posted a profit before tax (PBT) of N180 billion, marking a 125 percent surge compared to N80 billion recorded in 2023.
While several consumer goods companies struggled with losses, the agro-based firms demonstrated significant growth in both revenue and profitability.
Data from NGX showed that Presco’s total revenue for the 12 months reached N198.1 billion, a 93.48 percent increase from N102.4 billion in the previous year. Its PBT rose by 156 percent to N128 billion from N50 billion in 2023, with the fourth quarter alone posting an impressive N60.9 billion, a 233.46 percent rise from N18.2 billion recorded in the previous year.
Okomu Oil also recorded strong financial performance, with revenue surging by 73.4 percent to N130.06 billion, up from N75.1 billion in 2023. Its PBT stood at N52.05 billion, reflecting a 58 per cent increase from the N32.85 billion reported the previous year.
Buoyed by their improved financial performance, the stock prices of both companies have seen impressive year-to-date appreciation on the NGX. Presco, with a market capitalization of N785 billion, closed trading on Monday at N785 per share, representing a 65.3 percent increase from its opening price of N475 in January 2025. Similarly, Okomu Oil, which began the year at N444 per share, has gained 20.7 percent, closing at N536 with a market capitalization of N511 billion.
Industry experts attribute the impressive performance of both firms to key economic and industry factors. The devaluation of the naira has boosted the export value of palm oil, while the Central Bank of Nigeria’s forex policy adjustments have allowed exporters to maximize foreign earnings. Government-backed incentives, including the Anchor Borrowers’ Programme (ABP) and tax breaks for agro-processors, have also provided critical financial support.
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Additionally, soaring global demand for crude palm oil (CPO), particularly from Europe and Asia, has fueled revenue growth. Strategic investments in automation, plantation expansion, and improved yield management have further enhanced efficiency and output. By localizing sourcing and integrating renewable energy, the companies have optimized operational costs.
Unlike consumer goods firms grappling with inflationary pressures and forex volatility, Presco and Okomu Oil have leveraged rising commodity prices and minimal FX exposure to maintain growth. Expansion into value-added palm oil derivatives has also created new revenue streams, positioning both companies for sustained success despite economic uncertainties.
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