Presco’s profit soars to a record high despite weaker Q4

Presco Plc, Nigeria’s largest listed palm oil producer, posted a record full-year profit in 2025, shrugging off a softer fourth quarter as surging sales volumes, higher palm oil prices, and a balance-sheet transformation powered earnings to new highs.

Profit attributable to shareholders jumped to N138.1 billion, almost doubling from N76.1 billion a year earlier, according to the company’s unaudited results for the year ended December 31 filed with the Nigerian Exchange. Revenue climbed 60 percent to N331.2 billion, driven largely by stronger sales of crude and refined palm oil across Nigeria and Ghana.

The bumper annual showing contrasted sharply with the final quarter. Fourth-quarter profit fell to N27.5 billion from N52.5 billion a year earlier, as higher finance costs, rising operating expenses, and lower exchange gains weighed on earnings. Gross profit in the quarter slid to N26.1 billion, down from N42.6 billion in the same period of 2024.

Still, the full-year numbers underline how Presco has benefited from structurally higher palm oil prices, expanded plantation output, and tighter control over its integrated operations. Cost of sales rose to N103.0 billion from N67.6 billion but lagged revenue growth, lifting gross margin for the year.

A major earnings boost also came from biological asset revaluations, which added N32.9 billion to operating profit, reflecting higher fair values of oil palm plantations amid favourable pricing and yield assumptions. Operating profit before finance items surged to N214.4 billion, up from N126.1 billion a year earlier.

The weaker Q4 performance was largely financial rather than operational. Finance costs more than tripled year-on-year to N43.6 billion, reflecting higher borrowings and interest rates, while exchange gains fell compared with earlier quarters. Administrative expenses also climbed sharply over the year, rising to N53.7 billion as staff costs, insurance, logistics, and management fees increased.

Presco’s balance sheet, however, looks markedly stronger. Cash and cash equivalents ballooned to N279.7 billion at year-end, up from N31.4 billion a year earlier, following a rights issue and robust operating cash flow. Net cash generated from operating activities rose to N146.2 billion, underscoring the company’s ability to convert earnings into cash.

That liquidity has given Presco room to pursue expansion. During the year, it spent N40.7 billion on property, plant, and equipment and completed the acquisition of the remaining 48 percent stake in Ghana Oil Palm Development Company, bringing the subsidiary to full ownership.

The deal deepens Presco’s exposure to Ghana’s palm oil market. That also follows the acquisition of 10,000 hectares across the Nsadop and Boki plantations in Cross River State in its latest expansion move.

Borrowings climbed to N164.1 billion from N55.4 billion, reflecting both expansion funding and working-capital needs. Even so, shareholders’ equity more than tripled to N426.7 billion, buoyed by retained earnings and proceeds from the rights issue, which raised N83 billion in share capital and N237.7 billion in share premium.

The company declared N72 billion in dividends for the year, signaling confidence in cash flows despite the heavier debt load and rising finance costs. Earnings per share surged to N134.38, from N74.01 a year earlier, mirroring the jump in profitability.

Investors are rewarding Presco for its operational efficiency, with its valuation climbing to N16.4 trillion, ranking it as the 20th most valuable company on the local bourse. Its shares gained 204 percent a year ago and have since January accrued 12.8 percent, closing trading on Friday, January 30, 2026, at N1,635.