Presco Plc has reported an 8.5 per cent increase in profit before tax to N151.5bn for the nine months ended September 30, 2026, despite inflationary pressures in the domestic market and declining global edible oil prices.
The integrated edible oil producer disclosed the performance in its financial results submitted to the Nigerian Exchange Limited (NGX) on Monday, attributing the growth to operational efficiency, cost management and strategic balance sheet adjustments.
The company's standalone operations recorded a 12.7 per cent increase in profit before tax to N96.9bn, while profit after tax rose by 11.9 per cent to N68.7bn during the period.
Revenue generated from its Nigerian operations also increased by 12.7 per cent to N222bn, while group gross profit stood at N202.8bn, with gross profit margins exceeding 73 per cent.
The company attributed its cost efficiency partly to a reduction in standalone cost of sales, which declined by 6.2 per cent to N46.2bn, reflecting improved internal cost management.
Presco also recorded a significant reduction in its debt exposure during the nine-month period, cutting total borrowings by 57 per cent to N137.1bn, representing a reduction of N180.2bn.
Similarly, total group liabilities fell by 42.4 per cent to N278.2bn, while finance costs declined by 34.5 per cent from N30bn to N19.6bn.
The company's financial position was further supported by a 10.1 per cent increase in shareholders' equity to N487.3bn, alongside retained earnings of N253.5bn.
Presco also reported a cash position of N135.2bn as of September 30, 2026, reflecting its improved liquidity position.
Commenting on the results, the Managing Director and Chief Executive Officer of Presco Plc, Reji George, attributed the performance to disciplined cost control and improved productivity across the company's operations and supply chain.
“Our comprehensive business operations remain robust and well-positioned for continued success. Across our plantations, processing facilities, and supply chain, we have maintained disciplined cost management and optimised productivity, which has translated into strong financial results.
“Our diversified operational approach and strategic investments have enabled us to withstand economic headwinds while delivering growth,” George said.
He expressed optimism that the commencement of fresh fruit bunches production from the recently acquired Saro Oil Palm Limited plantation in the fourth quarter would further strengthen the company's production capacity and profitability.
According to him, the company would continue to prioritise operational efficiency, capacity expansion and sustainability as it works towards improving its performance before the end of the financial year.
“As we approach the end of 2026, our strategic focus remains on leveraging operational efficiencies, expanding our productive capacity, and reinforcing our commitment to sustainability. We are confident in our ability to close the year strongly and deliver long-term value, supported by our resilient business model and proactive management approach,” he noted.
Presco added that its operations, supported by subsidiaries including Ghana Oil Palm Development Company Limited and Siat Nigeria Limited, continued to strengthen its presence across the West African market.
The latest results highlight the company's performance amid challenging market conditions, with lower borrowing costs, improved productivity and stronger revenue from its Nigerian operations contributing to its nine-month profitability.