Presco Plc has delivered another standout financial year, reporting a pre-tax profit of N177.98 billion for the year ended December 31, 2025. This represents a 57.4% jump from the N113.22 billion recorded in 2024, underscoring the strength of its core palm oil operations and aggressive expansion strategy.
According to its audited results filed with the Nigerian Exchange on Friday, May 1, 2026, the agro-industrial giant credited the performance to “robust growth in core palm oil revenues, supported by higher product prices, increased production capacity, and strategic expansion across its operations.”
The company also declared a final dividend of N14.66 per 50 kobo share. When combined with interim payouts already made during the year, total dividend distribution rises to N44.66 per share, pending approval at the upcoming Annual General Meeting (AGM).
Revenue Growth Accelerates on Strong Palm Oil Sales
Presco’s top-line performance was particularly impressive, with revenue rising 59.3% year-on-year to N330.64 billion.
A breakdown of its operations shows that crude palm oil (CPO) remained the dominant revenue driver, surging 70.5% to N243.27 billion from N142.78 billion in 2024. Palm kernel oil (PKO) also posted solid growth, increasing 36.2% to N47.12 billion.
Management attributed this momentum to “higher global prices for palm oil and related products” as well as expanded production capacity supported by plantation development and upgraded processing infrastructure.
Strategic acquisitions also contributed, including increased stakes in the Ghana Oil Palm Development Company and the acquisition of Saro Oil Palm Limited, further strengthening its regional footprint.
Costs Rise, But Profitability Holds Firm
While revenue surged, operating expenses also climbed across key categories, reflecting the scale of expansion.
- Raw materials and consumables rose 35% to N88.46 billion
- Operating costs increased 48.5% to N62.17 billion
- Employee benefit expenses jumped 61.5% to N25.56 billion
- Income tax expense grew 59.8% to N56.63 billion
Despite these rising costs, Presco maintained strong profitability, with post-tax profit climbing 55.9% to N121.35 billion.
The company noted that growth in earnings was largely driven by scale, stating that expansion in production and improved pricing power helped offset cost pressures.
Earnings per share also strengthened significantly, rising 58.8% to N12,064.67.
Balance Sheet Expands on Heavy Investment Cycle
Presco’s financial position expanded notably during the year, reflecting an aggressive investment push.
Total assets increased 30.3% to N631.77 billion, driven mainly by a 46.6% surge in non-current assets, which reached N446.03 billion. This reflects heavy capital deployment into plantations, processing facilities, and acquisitions.
However, this expansion came with rising obligations. Total liabilities rose 27.9% to N275.25 billion, while borrowings increased 35.2% to N12.73 billion. Interest expenses also jumped 63.1% to N4.32 billion, highlighting higher financing costs associated with growth.
Still, shareholders benefited from the company’s strong earnings momentum, with equity rising 28.9% to N433.62 billion, supported by retained earnings growth of 55.9%.
Capital expenditure climbed 33.3% to N79.16 billion, while acquisitions absorbed a significant N163.18 billion in cash.
Market Awaits Reaction as Stock Extends Strong Rally
Market response to the results and dividend announcement is yet to be seen, as they were released on May 1, a public holiday for Workers’ Day.
Presco last traded at N2,300 per share on April 30, 2026, on the Nigerian Exchange Limited. The stock has surged 58.6% year-to-date from its opening price of N1,450, making it one of the strongest performers on the exchange.
With a market capitalisation of approximately N2.68 trillion, Presco remains one of the most valuable listed companies in Nigeria.
Expansion Strategy Fuels Growth, But Raises Cost Questions
The company’s performance reflects more than just strong earnings—it signals a deliberate long-term expansion drive aimed at scaling production and strengthening industry dominance.
Presco recently expanded its plantation base with over 10,000 hectares of oil palm estates in Nsádop and Boki, significantly boosting its raw material capacity.
It also launched a N236.67 billion rights issue to fund acquisitions and capital projects, reinforcing its push to deepen vertical integration and expand processing capacity.
However, this rapid growth strategy is not without trade-offs. Rising operating costs, higher borrowing levels, and increased tax burdens could place pressure on margins in the short term.
Going forward, analysts are likely to focus on how efficiently the company integrates its new assets, manages financing costs, and sustains output from its expanding plantations. Its ability to balance aggressive growth with operational efficiency will be key to sustaining shareholder value.