Okomu Oil Palm Plc has entered 2025 as one of Nigeria’s most profitable and efficiently run agribusiness firms, delivering the kind of financial performance that cements its status as a blue-chip growth stock.
The company’s latest financial report reveals a striking year of acceleration, both in profit and in shareholder returns, redefining expectations in the country’s agro-industrial sector.
For the nine months ending September 2025, Okomu recorded a profit of N60.33 billion, a figure that not only surpasses the company’s entire 2024 profit by more than 50% but also marks the highest earnings in the past five years.
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Revenue surged to N174 billion, representing a 63% year-on-year increase, outpacing even its full-year 2024 figures. This performance sets a new benchmark, confirming the company’s ability to sustain growth despite rising input costs and global market volatility.
Earnings per share (EPS) stand at N63.25, up 113% year-on-year, representing the strongest growth trajectory in half a decade. Over the same period, Okomu’s EPS has grown at a compound annual growth rate (CAGR) of 90%, a rare feat even among listed industrials on the Nigerian Exchange.
However, the company’s historical dividend payout has not always matched its earnings growth. Dividends have risen at a slower CAGR of 50%, reflecting a prudent and conservative approach. For years, Okomu prioritized reinvestment and operational expansion over aggressive payouts — a strategy that built its cash reserves and operational resilience.
That approach, while cautious, appears to have positioned the company for a strong payout cycle in 2025.
A Turning Point: 2025 Interim Dividends Show a Shift
This year, Okomu has sent a powerful signal of change. The company declared an H1 2025 interim dividend of N30 per share, nearly four times the N8 per share distributed in H1 2024. It also announced a nine-month interim dividend of N10 per share, up fivefold from N2 per share during the same period last year.
Together, these interim payouts amount to N40 per share, translating to approximately N38.16 billion in total cash dividends — about 63% of the nine-month profit.
This marks a decisive shift from Okomu’s historically conservative dividend policy to one that reflects its robust profit and cash generation capabilities. For investors, it signals a maturing capital strategy that finally aligns operational success with tangible returns.
Analysts tracking Okomu’s financials see room for further generosity. Based on the company’s historical payout patterns and its exceptional interim performance, a final dividend of about N44 per share appears reasonable and achievable.
In 2024, the final dividend stood at N26 per share, and scaling that relative to the current year’s surge suggests a total dividend of roughly N84 per share for 2025.
Such a payout would represent a landmark moment in Okomu’s shareholder relations — the highest in its corporate history — and a tangible sign that management recognizes investor loyalty during years of steady build-up.
The company’s balance sheet fully supports this shift. Over the past five years, Okomu has generated N137.5 billion in operating cash flow and spent N54.4 billion on capital expenditures. That leaves a cumulative free cash flow of N83 billion, a strong buffer that allows it to fund dividends while sustaining reinvestment.
As of September 2025, retained earnings had climbed to N60.87 billion, underscoring both profitability and liquidity strength.
This solid financial foundation enables Okomu to increase shareholder rewards without jeopardizing operational flexibility — a balance that has eluded many companies in Nigeria’s inflationary environment.
The market has rewarded Okomu’s consistency handsomely. The company’s stock, which began 2025 at N444, has surged to N1,020, translating to 130% year-to-date gains.
Investors who entered the stock at the end of 2024 have already realized substantial capital appreciation, alongside the interim dividends paid out this year.
The most recent dividend — N10 per share, payable on November 14, 2025, for shareholders on record as of October 31 — further consolidates that return story.
Looking ahead, with expectations of a total dividend of N84 per share and solid fundamentals, analysts have set a six-month price target between N1,200 and N1,300, driven by confidence in continued profitability and disciplined management.
Operational Excellence and Sector Leadership
Okomu’s 2025 success is also rooted in its operational efficiency. The company has maintained cost discipline and leveraged economies of scale across its palm oil and rubber processing units.
Global palm oil prices, though volatile, have remained supportive, while domestic demand continues to expand amid Nigeria’s push for import substitution in food and industrial raw materials.
By optimizing yield per hectare and controlling input costs, Okomu has managed to outperform sector peers and sustain double-digit growth even as inflationary pressures weigh on most manufacturers.
Balancing Growth, Payouts, and Future Prospects
Okomu’s management appears determined to signal that high profitability and generous shareholder returns are not mutually exclusive. The company’s prudent financial culture — long seen as overly conservative — is now translating into a shareholder-friendly capital policy.
Following the projected final dividend of N44 per share, the total 2025 payout of N84 would set a benchmark for listed agribusinesses in Nigeria.
The company’s performance this year underscores a critical message to investors: that disciplined capital allocation, patient reinvestment, and long-term growth strategies can eventually yield both financial strength and attractive returns.
For years, Okomu’s shareholders supported the company’s steady approach — accepting modest dividends in exchange for reinvestment and growth. In 2025, that patience is finally paying off.
The surge in profits, record-breaking revenues, and generous dividend policy all point to a company at the peak of its operational and financial maturity.
As it stands, Okomu Oil Plc’s story this year is one of sustained growth, disciplined management, and renewed commitment to investors.
By aligning shareholder returns with its record profitability, Okomu is not only rewarding loyalty but also setting a new standard for how Nigerian corporates can balance performance and payout in an uncertain economic climate.