Presco Plc, one of Nigeria’s major palm oil producers, has reported a strong financial performance for the first half of 2025, posting a profit after tax of ₦88.72 billion. This marks a 128 per cent increase compared to the ₦38.88 billion reported in the same period of 2024. The growth was driven by a significant rise in revenue, improved cost management, and strong operational performance.
The company’s revenue for the period ended June 30, 2025, stood at ₦198.74 billion, more than double the ₦88.02 billion recorded in the first half of 2024. This represents a 126 per cent increase, highlighting the rising demand for palm oil and its by-products, as well as the company’s growing market reach within and outside Nigeria.
Presco also reported that its gross profit climbed by 164 per cent to ₦173.25 billion in the period under review, compared to ₦65.59 billion in the corresponding period of 2024. This pushed its gross margin to 87 per cent in H1 2025, up from 75 per cent in the previous year. The improvement reflects better cost controls and higher product pricing across its operations.
Operating profit rose to ₦129.80 billion, showing a 138 per cent growth from ₦54.48 billion recorded in the first half of 2024. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also increased to ₦132.47 billion, compared to ₦56.72 billion in the same period last year.
Despite a sharp increase in net finance costs, which jumped to ₦17.95 billion from ₦4.42 billion in the first half of 2024, Presco was still able to grow its profit before tax by 122 per cent. Profit before tax stood at ₦111.85 billion, compared to ₦50.44 billion a year earlier.
The company paid ₦23.13 billion in income tax during the period, almost double the ₦11.56 billion it paid in the same period last year, reflecting its higher earnings. As a result, earnings per share (EPS) jumped to 8,872 kobo in H1 2025, up from 3,888 kobo in the same period of 2024, pointing to higher returns for shareholders.
Presco’s balance sheet also showed strong growth. Total assets rose to ₦612.99 billion as of June 30, 2025, compared to ₦475.10 billion reported at the end of December 2024. This increase was largely driven by capital investments, expansion of production capacity, and improved inventory management.
The company’s retained earnings rose to ₦220.66 billion from ₦126.73 billion at year-end 2024, while total equity increased to ₦229.88 billion from ₦211.18 billion, reflecting the business’s strong capital base and ability to reinvest profits for future growth.
In terms of liquidity and financial health, Presco’s current ratio improved to 1.37 from 0.98, indicating that the company now has more short-term assets to cover its short-term liabilities. However, its debt-to-equity ratio increased to 1.67, up from 1.25 at the end of December 2024, showing that the company is using more debt to finance its operations and growth.
Presco Plc, under the leadership of its management team, has continued to maintain a strong foothold in Nigeria’s agriculture and food production industry. With a growing need for locally produced vegetable oil and the Federal Government’s emphasis on reducing import dependence, the company is strategically positioned to benefit from both local and export opportunities.
The company has not yet released a breakdown of regional sales performance or export volumes, but analysts believe that the firm’s consistent earnings growth and strong margins point to robust demand and stable operations across its plantation and processing facilities.
As a key player in the agribusiness space, Presco’s performance in H1 2025 has placed it among the top-performing companies listed on the Nigerian Exchange. Its strong fundamentals, improved cash flow, and healthy earnings outlook are likely to boost investor confidence in the second half of the year.
