Presco PLC published remarkable financial performance for the closed quarter on June 30, 2025, indicating what analysts now describe as a golden era for the Nigeria sector in palm oil.
The company declared before tax profit of 53.2 billion nairas in T2 2025, marking an increase of 156% compared to 20.7 billion nairas recorded during the same period last year.
The result raised the pre -to -end benefit on the presco semester at 111.8 billion Nairas, up 121.76% compared to H1 2024, mainly driven by a massive increase in income. In the second quarter alone, the company’s revenues increased by 130.79% to reach 104.9 billion Nairas, which increased the income of H1 to 198.7 billion Nairas, more than double the N888 billion Nairas that it recorded during the corresponding period last year.
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In particular, 100% of Presto revenues come from the sale of raw and refined palm oil products. Interior sales represented the majority of 146.4 billion nairas, while Ghana contributed to 52.2 billion nairas. This increase strengthens the growing status of palm oil as a high -yield export product in the middle of the will of Nigeria to diversify its economy far from crude oil.
The gross profit of the company more than doubled at 87.1 billion nairas in the second quarter, against 31.7 billion Nairas in the same quarter last year, despite an increase of 30.36% of the cost of sales. However, administrative expenses increased significantly – up 207.17% in annual shift to 23.2 billion Nairas, which reflects growing general costs in the midst of expansion operations. However, the expenditure on the topline has exceeded spending, as operating profit increased to 60.7 billion Nairas, compared to 22.7 billion nairas in the second quarter of 2024.
The funding costs have also increased sharply, largely due to interest on loans, which jumped from 319.27% to 8.9 billion nairas. But these higher costs had little impact on overall profitability, because net profit jumped 177.59% in annual sliding to 41.1 billion Nairas.
Presco’s assessment has shown significant expansion, total assets increasing by 29% to 612.9 billion nairas. The profits kept increased to 220.6 billion nairas, against 126.7 billion nairas in December 2024, signaling a strong reinvestment potential.
Presco director general, Reji George, expressed his optimism with regard to the business growth trajectory, declaring: “Looking at the future, we are well placed to maintain this momentum, with our solid operational capacity and our strategic initiatives which should stimulate continuous growth and value creation for our stakeholders.”
Presco’s stellar performance occurs in the middle of the similar success of Okomu Oil Palc, the other large producer of palm oil from Nigeria. The two companies have delivered growth figures for two and triple figures during recent quarters, which made market observers to double palm oil “New Gold in Nigeria”. The increase in the profitability of these companies is considered to be validation of the growing value of palm oil, not only as a domestic product but also as vital export.
The gathering of palm oil prices in the world, as well as the government’s opposition to the importation of edible oils and an increased demand for locally refined products, has created a favorable market environment for Presco and Okomu. Together, they quickly become Belwethers of an agro-industrial sector thanking that was once the economic skeleton of Nigeria before the 1970s oil boom.
At the end of the exchanges on July 29, 2025, Presco actions were at the price of 1,550 N, offering an amazing return of 226.32% of the year – another reflection of investor confidence in the future of the sector.
Key protruding facts (Q2 2025 vs Q2 2024)
- Income: 104.9 billion nairas (+ 130.79% in annual shift)
- Sales cost: 17.8 billion nairas (+ 30.36% in annual shift)
- Gross profit: 87.1 billion nairas (+ 174.02% in annual shift)
- Administrative expenses: 23.2 billion nairas (+ 207.17% in annual shift)
- Operating profit: N60.7 billion (+ 167.22% in annual sliding)
- Financial cost: 8.9 billion nairas (+ 319.27% in annual shift)
- Benefit before tax: 53.2 billion nairas (+ 156.27% in annual sliding)
- Total assets: N612.9 billion (+ 29.02% in annual sliding)
With Presco and Okomu who rake in billion, industry observers believe that palm oil could become a long -term replacement for oil income if it is supported by good policies and incentives. The current boom also highlights the unexploited potential of the Nigeria agricultural sector, which continues to prove its resilience and profitability in the event of economic, economic winds.
