Okomu Oil Palm Plc, a leading agro-allied company based in Edo State, Nigeria, achieved remarkable financial growth in the first half of 2024. Its revenue and profit figures for the period are close to matching the company’s performance for the entire 2023 fiscal year, thanks to favorable market conditions locally and internationally.
The National Bureau of Statistics (NBS) revealed that palm oil prices surged by 56.9%, with the average price of a bottle rising from ₦1,174 in June 2023 to ₦1,842.27 in June 2024. This price increase contributed to Okomu’s revenue climbing to ₦75 billion, up from ₦40.60 billion in the first half of 2023. Local sales accounted for ₦67.27 billion, representing a 76.7% increase from ₦38.07 billion in the same period last year.
Exports also played a significant role, with the company achieving an extraordinary 206.2% increase in export revenue, rising to ₦7.74 billion from ₦2.53 billion in the previous year. Speaking to the media, Okomu’s Managing Director, Dr. Graham Hefer, commended the Edo State Government for its supportive policies, which have bolstered the activities of agro-allied companies in the region.
“The government has made agriculture much more conducive for businesses by implementing effective structures and fostering cooperation between institutions and companies,” Hefer noted. He also urged Nigerian businesses to consider exporting their goods, citing the advantages of earning foreign exchange.
Despite these successes, Okomu’s cost of sales rose significantly, increasing by 174.6% to ₦30.46 billion as of June 2024, compared to ₦9.42 billion in the previous year. The oil palm segment accounted for the majority of these expenses, totaling ₦26.4 billion, a 180.5% increase from ₦9.41 billion in June 2023.
The company’s profit after tax for the first half of 2024 stood at ₦20.20 billion, compared to ₦16.19 billion during the same period in 2023. This puts Okomu on track to exceed its 2023 full-year profit of ₦20.56 billion, with just six months of operations.
Looking ahead, Okomu projects ₦13.05 billion in revenue for the third quarter ending September 30, 2024. Expenses, including cost of sales and administrative costs, are expected to amount to approximately ₦11.99 billion, leaving a profit estimate of ₦1.06 billion for the period.
For FY 2023, Okomu paid a final dividend of ₦14 per share to shareholders on May 23, 2024, demonstrating its commitment to returning value to investors.
