Okomu Oil Reports Strong Q1 2025 Profits – Grows by Nearly 40%
Okomu Oil Palm Company PLC has announced strong financial results for the first quarter of 2025. The company made a pre-tax profit of N32.2 billion, which is a 39.81% increase compared to the N23.03 billion it made in the first quarter of 2024. This growth shows the company is doing well despite challenges in the economy.
The company’s success came mainly from its high sales of palm oil and rubber. Total sales, also known as turnover, rose to N58.1 billion, which is 33.64% higher than the N43.4 billion recorded in the same period last year.
Where the Money Came From
Okomu Oil made most of its money from local (Nigerian) sales. Sales within Nigeria brought in N50.7 billion, which is 87.3% of total revenue. Sales outside Nigeria, known as export sales, brought in N7.3 billion.
This means that most of the company’s customers are still based in Nigeria, even though they also export products to other countries. It shows how strong demand is in the local market for Okomu’s palm oil and rubber.
Costs and Profits
Even though the company made more money, it also spent more to make those sales. The cost of sales went up to N15.4 billion, which is 50.08% more than what they spent in Q1 2024. These costs include things like production, transportation, and raw materials.
After subtracting the cost of sales from total revenue, the company was left with a gross profit of N42.6 billion, up 28.52% from last year. This is still a strong result, even though costs are rising.
Net operating expenses, which include money spent on things like salaries, marketing, and maintenance, also rose to N9.5 billion, a 15.12% increase from N8.3 billion in 2024.
Even after these expenses, the company made an operating profit of N33.02 billion, which is 33.02% higher than what it earned in Q1 2024. This means the business is still very efficient and profitable.
Finance Income and Costs
Not all parts of the report were positive. The company’s finance income — which includes things like interest on investments and gains from foreign currency — dropped sharply from N2.7 billion last year to N66.7 million in Q1 2025. This is a 97.55% decline.
The big drop happened mainly because of a sharp fall in exchange gains, which went from over N2 billion to just N65.5 million. This is likely due to changes in the value of the naira and other currencies.
On the brighter side, finance costs — money spent on paying off debts and loans — fell a lot, from N4.5 billion in Q1 2024 to N886.7 million this year. This big drop helped reduce the pressure on the company’s finances.
Share Price and Market Performance
As of April 30, 2025, Okomu Oil’s share price on the Nigerian stock market was N524.70 per share. So far this year, the company’s stock has grown by 18.1%.
In 2024, Okomu Oil had an even better year on the market, with its stock rising by 70.77%. This strong performance shows that investors still have confidence in the company’s ability to make money and manage its business well.
Summary of Key Figures:
Total Sales (Turnover): N58.1 billion (+33.64% YoY)
Cost of Sales: N15.4 billion (+50.08%)
Gross Profit: N42.6 billion (+28.52%)
Operating Expenses: N9.5 billion (+15.12%)
Operating Profit: N33.02 billion (+33.02%)
Finance Income: N66.7 million (-97.55%)
Finance Costs: N886.7 million (-80.3%)
Pre-Tax Profit: N32.2 billion (+39.81%)
Share Price (as of April 30, 2025): N524.70
Stock Performance 2025 YTD: +18.1%
Stock Performance 2024: +70.77%
Okomu Oil’s strong Q1 results show that the company continues to grow despite rising costs and foreign exchange challenges. Its main strength lies in strong local demand for palm oil and rubber, and its ability to manage operations efficiently.
Even though exchange rate issues hurt finance income, lower finance costs helped the company maintain strong profits. Investors remain confident, as shown by the steady rise in share price this year.
With a solid first quarter behind it, Okomu Oil is in a good position to have a strong year if current trends continue. However, the company may still need to keep an eye on currency changes, cost increases, and global market conditions.
