Okomu Oil Plc has reported a remarkable financial performance for the second quarter of 2025, significantly exceeding expectations and demonstrating strong growth across key metrics. The agribusiness firm's impressive results underscore its resilience and strategic effectiveness in the current economic climate.
The company announced a pre-tax profit of N34.841 billion for the quarter ended June 30, 2025. This represents an extraordinary 459% year-on-year (YoY) increase compared to the N6.236 billion recorded in the same period last year. This outstanding performance not only showcases significant growth but also surpassed the company's Q2 profit forecast by over 238%, highlighting a period of exceptional operational efficiency and market responsiveness. This strong quarterly showing propelled Okomu Oil's pre-tax profit for the first half of the year to a substantial N67.053 billion.
The robust profit figures were primarily fueled by an impressive surge in top-line growth. In Q2 2025, Okomu Oil's revenue soared to N71.7 billion, marking a remarkable 128% year-on-year increase. A critical factor in this revenue expansion was the company's strong focus on the domestic market, with local sales accounting for over 92% of total revenue. This indicates a successful strategy in capitalizing on local demand and perhaps mitigating risks associated with international market fluctuations.
Significantly, the growth in revenue comfortably outpaced the increase in the cost of sales. For the year-to-date, revenue reached N129.834 billion, reflecting a healthy 73% increase, while the cost of sales rose by a more modest 41% to N42.9 billion. This disparity in growth rates had a positive ripple effect on profitability. In Q2, gross profit stood at over N44 billion, with the gross profit margin improving to an impressive 62%, underscoring efficient cost management relative to sales.
A notable improvement contributing to the boosted earnings came from a significant reduction in finance costs. These costs, which primarily stemmed from foreign exchange revaluation losses, had previously acted as a drag on earnings. However, they sharply dropped to N547 million from N2.9 billion in the same quarter of 2024, representing an 81.34% decrease. This substantial reduction allowed a greater portion of the company's robust revenue to translate directly into profit.
From a balance sheet perspective, Okomu Oil's total assets stood at N159.911 billion as of June 2025, reflecting a solid 36.63% increase over a six-month period. Furthermore, retained earnings climbed to N76.693 billion, up from N53.957 billion in December 2024, indicating healthy reinvestment capacity and a strengthening financial position.
Okomu Oil's strong financial health is also reflected in its stock market performance. As of July 23, 2025, shares of Okomu Oil were priced at N930 on the Nigerian stock market, boasting a remarkable year-to-date performance of 109.46%. This strong market showing mirrors the company's excellent financial results and investor confidence.
The second quarter of 2025 has clearly been a period of significant achievement for Okomu Oil Plc, setting a strong precedent for the remainder of the year and solidifying its position as a key player in the agribusiness sector.