Presco towers above COVID19 challenges posting impressive 71% jump in half year profits

NIGERIA – Presco Plc, one of Nigeria’s fully-integrated agro-industrial company, has distinguished itself as one of Nigeria’s resilient companies by posting a 70.55 per cent increase in profit after tax for the half-year ended June 30, 2020.

The company was able to navigate the difficult economic challenges to post a half year profit after tax of US$11.34 million, a great improvement when compared to the US$6.64 million achieved during the same period in 2019.

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Presco Plc’s profit before tax stood at US$14.90 million in 2020, up from the US$8.88 million recorded a year earlier, representing an increase of 67.73 per cent.

The company’s revenue equally grew to US$34.76 million representing a 29.35 percent increase when compared to the US$26.86 million that was recorded during the same period last year.

Presco in its financial statement also noted that its cost of sales also increased, rising from the US$9.19 million mark in 2019 to reach US$11.41 million in H1 2020.

Presco, a palm-oil processing firm listed on the Nigerian Stock Exchange, recently signed a partnership deal with the Edo State Government to develop high-yielding oil palm seeds in the state.

Presco’s Chair, Pierre Vandebeeck, explained that the project which is part of Edo State Oil Programme would enable his company to develop smallholder oil palm farms using technology.

Vandebeeck disclosed that the company planned to create a special company in Nigeria for the propagation and distribution of high-yielding planting materials.

Speaking on the partnership, Edo State Governor, Godwin Obaseki, stated that the development of the high-yielding seeds was necessary to make the business more profitable for farmers as oil palm had a long gestation period.

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

It is a fully-integrated agro-industrial company in Nigeria with business interests in the cultivation of oil palm plantations and milling and crushing palm kernels to produce a range of refined vegetable oil.

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