Okomu Oil Palm Plc has posted a remarkable performance for the second quarter ended June 30, 2025, with pre-tax profit surging 459% year-on-year to N34.841 billion, up from N6.236 billion in Q2 2024.
The result exceeded the company’s forecast by over 238%, reflecting sustained momentum in Nigeria’s expanding palm oil industry.
This stellar showing brings Okomu’s half-year pre-tax profit to N67.053 billion, placing the company among the top-performing agribusinesses on the Nigerian Exchange.
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The company’s earnings continue to be driven by strong top-line growth. In Q2 alone, revenue rose 128% to N71.724 billion, powered largely by local sales, which accounted for more than 92% of total revenue. On a year-to-date basis, revenue has hit N129.834 billion, a 73% increase over the same period in 2024.
While the cost of sales also climbed, rising 36% to N27.411 billion, the growth was significantly outpaced by revenue, boosting gross profit by 289% to N44.313 billion and improving gross margin to 62%, one of the strongest in the sector.
Operating expenses rose to N8.946 billion, a 56.7% jump, but were easily absorbed by the wider revenue base. Notably, finance costs dropped sharply to N547 million, down from N2.9 billion in Q2 2024, as foreign exchange revaluation losses that previously dragged earnings eased.
Net profit after tax rose 404% to N25.799 billion, highlighting not just sales momentum, but also improved cost efficiency and financial discipline.
As of the end of June 2025, total assets stood at N159.911 billion, a 36.6% increase from December 2024. Retained earnings also grew to N76.693 billion, reflecting a healthy balance sheet and the company’s capacity for reinvestment and dividend payout.
The strength of Okomu’s numbers is further underlined by its stock market performance. As of July 23, 2025, its share price stood at N930, with a year-to-date return of 109.46%, outperforming many listed industrial and agribusiness peers.
Nigeria’s Palm Oil Sector-wide Growth
Okomu’s stellar performance mirrors a broader boom in Nigeria’s palm oil sector, which has seen accelerated growth in recent years due to increasing domestic demand.
According to data from the National Bureau of Statistics (NBS), palm oil remains one of Nigeria’s fastest-growing agricultural commodities. Nigeria is currently experiencing a significant palm oil deficit, estimated to be around 900,000 metric tons, valued at $800 million. This deficit is largely due to a gap between domestic production and consumption, with imports filling the shortfall. This means the market opportunity remains vast.
Other sector players are also reaping the rewards of this expansion. Presco Plc, another major player in the industry, reported a 114% increase in post-tax profit to N23.39 billion in Q2 2025, driven by a 92% surge in revenue to N56.2 billion. Like Okomu, Presco is also benefiting from a strong uptick in local demand and higher prices for crude palm oil, soap noodles, and related by-products.
These companies have been shielded from the worst effects of forex scarcity by their naira-based operations. Their vertical integration, which includes plantations, mills, and processing plants, has given them a cost advantage and pricing power in a market that is still underserved.
With Nigeria’s growing population and increasing demand for palm oil-based products—including food, cosmetics, and biofuels—the sector is expected to maintain momentum through the second half of 2025.
Okomu Oil is expected to continue leveraging this favorable macroeconomic environment. Analysts project further earnings growth as the company reinvests in expanding plantation capacity and upgrading processing technology to enhance efficiency.