Nigerian palm oil processing firm Presco reports 15% decline in Q1 profit

NIGERIA – The Nigerian Stock Exchange listed palm oil processing firm, Presco Plc has reported a 15.88% decline in profit after tax of N1.80bn (US$4.6m) for the first quarter ended March 31, 2020 from N2.14bn (US$5.5m) recorded in the corresponding period in 2019.

According to the firm’s un-audited financial statement its profit before tax declined to N2.35bn (US$6.05m) from N2.58bn (US$6.64m) in the same period a year earlier, representing a decline of 8.66 per cent.

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Presco’s revenue declined to N5.38bn (US$13.8m) during the period under review from N5.51bn (US$14.1m) in 2019, while the cost of sales dipped to N1.175bn (US$3m) from N1.123bn (US$3.1m).

The company incurred N1.271bn (US$3.27m) in selling, general and administrative expenses coupled with N60.95m (US$157,000) in distribution expenses.

Recently the fully-integrated agro-industrial company signed a partnership deal with the Edo State Government to develop high yielding oil palm seeds in the state as part of the Edo State Oil Palm Programme (ESOPP).

The ESOPP is an initiative of the state government to revive the palm oil sector for global competitiveness.

The firm said the deal would enable it to develop smallholder oil palm farms using technology of multiplying seeds, called in-vitro culture.

In addition to that it plans to create a special company in Nigeria for the propagation and distribution of high-yielding planting materials, reports The Punch.

Presco has business interests in the cultivation of oil palm plantations, milling and crushing palm kernels to produce a range of refined vegetable oil.

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The company also has a packaging plant and a biogas plant which treats its palm oil mill effluent.

Presco has a concession of 6 462 hectares at Obaretin Estate; 12 560 hectares at Ologbo Estate; 2 800 hectares at Delta Estate; and 17 000 hectares at Sakponba Estate.

It is a subsidiary of Siat, a Belgian agro-industrial company which specialises in cultivating smallholder plantations of mainly oil palm and rubber tree crops.

Siat has a major stake in the Ghana Oil Palm Development Company (GOPDC) in Ghana, Siat Gabon in Gabon and Compagnie Heveicole de Cavally in Ivory Coast. The company’s head office is in Edo State, Nigeria.

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