Nigeria’s biggest crude palm oil producer and second-biggest producer of rubber, Okomu oil palm company plc have recorded its highest profit in five years on record oil and rubber sales.
Data sourced from the Nigerian Exchange Group showed that Okomu oil recorded a whopping profit after-tax increase of 136.7 percent to N11.6 billion in the first nine months of 2021 compared to N4.9 billion in 2020.
The agri-business recorded a 66.6 percent growth in sales of rubber and oil palm to N31 billion in the first nine months of 2021 compared to N18.6 billion in the corresponding period.
This company’s profit also saw a boost on the back of a 75.3 percent reduction in finance cost to N111 million in September 2021 from N450 million in the first nine months of 2020.
The data further revealed that Okomu oil exceeded its preceding year’s gross profit of N16.4 billion by 69.5 percent with a gross profit of N27.8 billion in the first nine months of 2021.
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However, the company reported a 42.1 increase in the cost of sales to N2.7 billion from N1.9 billion for crude palm oil and rubber recorded a 72.9 percent increase to N410 million from 237 million in the periods under review.
The profit before tax grew to N14.8 billion from N6.8 billion in the comparable period.
The leading agricultural firm recorded finance income which surged to N54.1 million with a 400.9 percent increase in the first nine months of 2021 compared to the previous year with N10.8 million.
Finance income comprises interest received on outstanding monies and upward adjustments to the fair value of a provision, financial liability or financial asset, gain on derivatives, net foreign exchange gain and interest income on lease receivables.
The total comprehensive income touched N11.6 billion in September 2021, a whopping 183 percent increase from N4.1 billion in the corresponding period last year.
Cash flow from operating activities grew by a whopping 138.7 percent in September 2021 to N14.8 billion from N6.2 billion in the previous year.
Net operating expenses jumped to N13 billion, some 41.3 percent from N9.2 billion in the same period last year.
Okomu Oil Palm Company recorded a 61.4 percent increase in local sales to N26.8 billion in 2021 from N16.6 billion in the previous year, and export sales rose to N4.18 billion in the first nine months of 2021 with a whopping 112 percent from N1.97 billion in the previous year.
The firm’s total debt dipped 11.58 percent to N10.65 billion while total assets rose by 19.9 percent to 60.5 billion in the first nine months of 2021.
Earnings Per Share rose to N12.16 from N5.24, reflecting a 132 percent expansion
Okomu Oil has grown to become Nigeria’s leading oil palm company with a production capacity of 45,400T in palm oil and 7300T of rubber.
