Presco Plc has posted a remarkable financial performance for the quarter ended June 30, 2025, signaling what analysts now describe as a golden era for Nigeria’s palm oil sector.
The company reported a pretax profit of N53.2 billion in Q2 2025, marking a 156% increase from N20.7 billion recorded in the same period last year.
The result lifted Presco’s half-year pretax earnings to N111.8 billion, up 121.76% from H1 2024, driven primarily by a massive jump in revenue. In Q2 alone, the company’s revenue soared by 130.79% to N104.9 billion, pushing H1 revenue to N198.7 billion—more than double the N88 billion it recorded in the corresponding period last year.
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Notably, 100% of Presco’s revenue came from the sale of crude and refined palm oil products. Domestic sales accounted for the majority at N146.4 billion, while Ghana contributed N52.2 billion. This surge reinforces palm oil’s growing status as a high-yield export commodity amid Nigeria’s drive to diversify its economy away from crude oil.
The company’s gross profit more than doubled to N87.1 billion in Q2, up from N31.7 billion in the same quarter last year, despite a 30.36% increase in cost of sales. However, administrative expenses spiked significantly—up 207.17% year-on-year to N23.2 billion—reflecting rising overheads amid expanding operations. Still, the topline strength outpaced expenses, as operating profit climbed to N60.7 billion, from N22.7 billion in Q2 2024.
Finance costs also rose sharply, largely due to interest on borrowings, which jumped 319.27% to N8.9 billion. But these higher costs had little impact on overall profitability, as net income surged 177.59% year-on-year to N41.1 billion.
Presco’s balance sheet showed significant expansion, with total assets growing by 29% to N612.9 billion. Retained earnings rose to N220.6 billion, up from N126.7 billion in December 2024, signaling strong reinvestment potential.
Presco’s Managing Director, Reji George, expressed optimism over the company’s growth trajectory, stating: “Looking ahead, we are well-positioned to sustain this momentum, with our robust operational capacity and strategic initiatives expected to drive continued growth and value creation for our stakeholders.”
Presco’s stellar performance comes amid similar success from Okomu Oil Palm Plc, Nigeria’s other major palm oil producer. Both companies have delivered consecutive double- and triple-digit growth figures in recent quarters, causing market watchers to dub palm oil “Nigeria’s new gold.” The surge in profitability for these firms is being viewed as a validation of palm oil’s rising value, not only as a domestic commodity but also as a vital export.
The rally in palm oil prices globally, along with government opposition to the importation of edible oils and increased demand for locally refined products, has created a favorable market environment for both Presco and Okomu. Together, they are fast becoming bellwethers of a resurging agro-industrial sector that was once Nigeria’s economic backbone before the oil boom of the 1970s.
As of the close of trading on July 29, 2025, Presco’s stock was priced at N1,550, delivering a staggering 226.32% year-to-date return—another reflection of investor confidence in the sector’s future.
Key Highlights (Q2 2025 vs Q2 2024)
- Revenue: N104.9 billion (+130.79% YoY)
- Cost of Sales: N17.8 billion (+30.36% YoY)
- Gross Profit: N87.1 billion (+174.02% YoY)
- Administrative Expenses: N23.2 billion (+207.17% YoY)
- Operating Profit: N60.7 billion (+167.22% YoY)
- Finance Cost: N8.9 billion (+319.27% YoY)
- Pre-tax Profit: N53.2 billion (+156.27% YoY)
- Total Assets: N612.9 billion (+29.02% YoY)
With both Presco and Okomu raking in billions, industry watchers believe palm oil could become a long-term replacement for oil revenues if supported with the right policies and incentives. The current boom also underscores the untapped potential of Nigeria’s agricultural sector, which continues to prove its resilience and profitability in the face of economic headwinds.