Okomu Oil Palm PLC displayed remarkable performance for the second quarter enclosed on June 30, 2025, with a profit before tax on 459% in annual sliding at 34.841 billion nairas, against 6.236 billion nairas in the second quarter 2024.
The result exceeded the company’s forecasts of more than 238%, reflecting a sustained momentum in the Nigeria industry expanding palm oil.
This stellar exhibition provides a profit before Okomu taxes to 67.053 billion Nairas, placing the company among the most efficient agro-industries on the Nigerian Stock Exchange.
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The company’s profits continue to be motivated by high high -end growth. In the second quarter, income increased by 128% to 71.724 billion Nairas, largely fed by local sales, which represented more than 92% of total income. On an annual basis, income reached 129.834 billion Nairas, an increase of 73% compared to the same period in 2024.
While the cost of sales has also increased, the increase from 36% to 27.411 billion Nairas, growth was considerably exceeded by income, increasing gross profit by 289% to 44.313 billion Nairas and improving the gross margin at 62%, one of the strongest in the sector.
Operating expenditure reached 8.946 billion Nairas, a leap of 56.7%, but was easily absorbed by the larger income base. In particular, the financial costs fell sharply at 547 million Nairas, compared to 2.9 billion Nairas in the second quarter of 2024, while the loss of exchange of foreign exchange which previously led to the profits.
The net profit after tax increased by 404% to 25.799 billion nairas, highlighting not only a dynamic of sales, but also better profitability and financial discipline.
At the end of June 2025, total assets amounted to 159.911 billion nairas, an increase of 36.6% compared to December 2024. The profits kept also increased to 76.693 billion Nairas, reflecting a healthy assessment and the capacity for reinvestment and dividend from the company.
The strength of Okomu’s figures is still underlined by its stock market performance. As of July 23, 2025, its share price was 930 N, with a return from the beginning of the year of 109.46%, surpassing many industrial and agro-industrial peers listed.
Growth of the Palme Oil sector in Nigeria
Okomu’s stellar performance reflects a wider boom in the Palm Oil Nigeria sector, which has experienced accelerated growth in recent years due to the increase in domestic demand.
According to data from the National Bureau of Statistics (NBS), palm oil remains one of the fastest growth agricultural products in Nigeria. Nigeria is currently experiencing a significant palm oil deficit, estimated at around 900,000 metric tonnes, worth $ 800 million. This deficit is largely due to a difference between domestic production and consumption, imports filling the deficit. This means that the opportunity of the market remains large.
Other sectoral players also harvest the awards of this expansion. Presco PLC, another major player in the industry, said an increase of 114% in post-tax profit to 23.39 billion Nairas in the second quarter of 2025, driven by a 92% increase in revenue to 56.2 billion Nairas. Like Okomu, Presco also benefits from a sharp increase in local demand and higher prices of gross palm oil, soap noodles and related by-products.
These companies have been protected from the worst effects of Forex’s shortage by their operations based on Naira. Their vertical integration, which includes plantations, factories and processing factories, gave them an advantage of costs and a pricing power on a market which is always un served.
With the growing population of Nigeria and the growing demand for products based on palm oil – including food, cosmetics and biofuels – the sector should maintain the momentum up to the second half of 2025.
Okomu oil should continue to take advantage of this favorable macroeconomic environment. Analysts are planning to grow additional profits, the company reinvests in expansion planting capacity and improving treatment technology to improve efficiency.
