Presco Plc reports US$34.63M pretax profit in Q2 2025, underscoring palm oil increase
This growth was driven entirely by sales of crude and refined palm oil products.
NIGERIA/GHANA – Presco Plc, a leading player in Nigeria’s palm oil industry, has reported an exceptional financial performance for the quarter ending June 30, 2025, reporting a pretax profit of ₦53.2 billion (US$34.63M); a 156% surge compared to ₦20.7 billion (US$13.48M) in Q2 2024.
The result underscores the company’s growing dominance in Nigeria’s palm oil sector and reflects broader momentum in agribusiness diversification.
The company’s revenue for the quarter soared by 130.79% year-on-year to ₦104.9 billion (US$68.29M), lifting half-year revenue to ₦198.7 billion (US$129.35M), more than double the ₦88 billion (US$57.29M) recorded in H1 2024.
This growth was driven entirely by sales of crude and refined palm oil products, with domestic sales contributing ₦146.4 billion (US$95.31M) and Ghana accounting for ₦52.2 billion (US$33.99M).
This underscores palm oil’s escalating role as a high-yield export commodity amid Nigeria’s efforts to diversify its economy beyond crude oil reliance.
Despite a 30.36% increase in cost of sales, Presco’s gross profit more than doubled to ₦87.1 billion (US$56.70 M), up from ₦31.7 billion (US$20.64 M) in the same period last year.
Operating profit also saw a dramatic rise, reaching ₦60.7 billion (US$39.52M) compared to ₦22.7 billion (US$14.78M) in Q2 2024.
However, the company faced rising overheads, with administrative expenses jumping 207.17% to ₦23.2 billion (US$15.10M).
Finance costs climbed sharply due to increased borrowings, with interest expenses rising 319.27% to ₦8.9 billion (US$5.79M).
Still, Presco’s net income surged 177.59% year-on-year to ₦41.1 billion (US$26.76M), reflecting strong operational efficiency and market demand.
Presco’s balance sheet showed robust expansion, with total assets growing by 29% to ₦612.9 billion (US$399M).
Retained earnings rose to ₦220.6 billion (US$143.61M) from ₦126.7 billion (US$82.48M) as of December 2024, indicating strong reinvestment potential.
Commenting on the results, Managing Director Reji George expressed confidence in the company’s trajectory: “Looking ahead, we are well-positioned to sustain this momentum, with our robust operational capacity and strategic initiatives expected to drive continued growth and value creation for our stakeholders.”
Presco’s performance mirrors similar gains by Okomu Oil Palm Plc, highlighting a broader resurgence in Nigeria’s palm oil industry.
The global rally in palm oil prices, coupled with government measures to discourage edible oil imports and boost local refining, has created a favorable environment for these companies.
The surge underscores the vast untapped potential of Nigeria’s agricultural sector, positioning it as a promising alternative revenue source to crude oil, reviving the agro-industrial backbone of the economy from before the oil boom era.
As of July 29, 2025, Presco’s shares traded at ₦1,550 (US$1.01) on the Nigerian Exchange, delivering a year-to-date return of 226.32%.
This financial leap not only reinforces Presco’s market leadership but also signals the rising global relevance of palm oil as a strategic commodity in Africa’s economic diversification.
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