Okomu more than doubles profit in 9 months as revenue surges
Okomu Oil Palm Plc more than doubled its nine-month profit as higher palm oil prices and production volumes lifted revenue, offsetting cost pressures and macroeconomic headwinds in Nigeria.
Net income jumped 113 percent year-on-year to N60.33 billion in the first nine months of 2025, up from N28.34 billion a year earlier, the Benin City-based agribusiness said in a filing to the Nigerian Exchange. Pretax profit also surged 107 percent to N84.1 billion, driven by stronger turnover and improved operating efficiency.
Revenue rose 67 percent to N173.95 billion for the nine months through September 2025, compared with N103.95 billion a year earlier. The increase was fueled by robust demand for crude palm oil and rubber, alongside higher selling prices in both domestic and export markets.
Okomu’s third-quarter performance reflected similar momentum, with turnover up 52 percent year-on-year to N44.12 billion, while after-tax profit grew 57 percent to N12.8 billion. The strong quarterly showing highlights the company’s ability to sustain growth despite the typical lean season charaterised by the penultimate quarter to the end of the year.
Cost of sales climbed 39 percent to N61.87 billion, slower than the pace of revenue growth, helping gross profit to expand by 89 percent to N112.08 billion. The company’s gross margin widened to 64.4 percent, from 57.1 percent a year earlier, reflecting efficiency gains from ongoing plantation optimisation and favourable pricing dynamics.
Operating expenses rose 43 percent to N25.97 billion, largely due to inflationary pressures and higher logistics costs, even though prices have begun to taper with inflation slowing to 18 percent in September 2025 – cooling for the sixth straight month.
Still, the firm’s cost discipline and lean financing profile supported margin expansion. Finance costs fell sharply by 73 percent to N2.32 billion from N8.75 billion in the prior year, underscoring improved debt management and reduced exposure to costly short-term borrowings.
The stronger financial performance comes amid renewed global demand for vegetable oils, with palm oil prices staying elevated on the back of tight global supply and geopolitical uncertainties affecting trade routes. Locally, Okomu has benefited from Nigeria’s push for import substitution and agro-industrial investment incentives.
The company paid N53.42 billion in dividends earlier this year, following a strong 2024 performance, and retained N60.33 billion in earnings during the review period to bolster reserves and fund ongoing expansion projects.
Tax expenses nearly doubled to N23.77 billion in the nine months, consistent with the earnings surge, as the effective tax rate stood at about 28 percent. Total comprehensive income rose in line with net profit, boosting shareholders’ equity to about N62.4 billion at the end of September.
Analysts say Okomu’s earnings resilience underscores the defensive strength of Nigeria’s agricultural exports, even as manufacturers contend with volatile exchange rates and rising input costs. The company’s sustained investments in mechanisation and replanting are expected to further enhance yields and sustain margins in the coming quarters.
Shares of Okomu Oil have gained 130 percent year-to-date on the Nigerian Exchange, outperforming the All-Share Index, as investors price in the firm’s strong earnings momentum and dividend prospects.
