Okomu Oil nearly doubles full-year profit on sales growth

Net profit at Okomu Oil almost doubled in the full year of 2025, supported by a rising sales volume and favorable crude palm oil prices that have seen the palm oil maker sustain profitability last year.

Profit after tax rose to N63.53 billion in 2025, compared to N39.95 billion in the same period two years ago. This is as gross profit jumped 71 percent to N139.55 billion, reflecting improved margins amid higher palm oil prices.

According to its unaudited results filed with the Nigerian Exchange on Friday, revenue increased by 52 percent to N198.15 billion, supported by an increase in CPO sales, which grew 60.5 percent to N172.6 billion. The rubber segment also gained marginally by 13.3 percent to N25.5 billion, contributing 12.9 percent to total revenue.

Cost of sales increased 21 percent to N58.59 billion, from N48.48 billion a year earlier, reflecting higher input and operating costs. Costs rose at a slower pace than revenue, suggesting margin expansion, likely driven by oil palm’s stronger pricing and scale.

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Finance income slowed to N11.07 billion from N13.90 billion, while finance costs rose to N13.77 billion from N10.07 billion, turning previous net finance gains into a slight net finance loss. Nevertheless, profit before tax grew by 63.6 percent YoY to N87.3 billion, with margin adding 3.0 percentage points (ppts) to settle at 44.1 percent in FY’25.

Weaker than expected Q4

Despite recording a significant profit growth in the full year, the fourth-quarter performance was weaker than expected, even after accounting for the seasonally softer nature of the quarter.

Revenue declined by 7.3 percent to N24.2 billion, while net general expenses increased by 14.1 percent to N20.3 billion, leading to a 52.9 percent decline in operating profit to N3.9 billion.

EBIT margin also declined by 15.7 ppts to 16.2 percent. A net finance cost of N703.3 million compared to a net finance income of N4.2 billion was recorded in the period, which further compressed margins, with net profit margin declining by 30.8 ppts to 13.2 percent. EPS for the period settled at N3.36 compared to N12.06 in FY’24.