…Revenue grew by 127.5% y/y in Q2-25 (H1-25: +73.1% y/y) to N71.72 billion
…Gross margin expanded by 25.71ppts y/y to 61.8%, reflecting a slower rise in the cost of sales (+36.0% y/y | Q2-24: +172.3% y/y) relative to topline growth
…Profit after tax came in at N25.80 billion (Q2-24: N5.11 million)
MON JULY 28 2025-theGBJournal| Okomu Oil Palm Plc (OKOMUOIL), the Nigerian leading crude palm oil (CPO) producing firm reported a standalone EPS of N27.05 in Q2-25, representing a substantial 404.4% y/y increase from the prior year (Q2-24: N5.36).
This brings H1-25 EPS to N49.83 (H1-24: N21.17), supported by substantial revenue growth.
Revenue grew by 127.5% y/y in Q2-25 (H1-25: +73.1% y/y) to N71.72 billion, primarily driven by broad-based sales growth – local (+136.7% y/y | 92.3% of revenue) and export (+55.4% y/y | 7.7% of revenue).
The performance is driven by favourable pricing conditions amid stable volumes.
The topline performance was underpinned by stronger Crude Palm Oil (CPO) prices (Q2-25 CIF Rotterdam average: USD940.21/mt vs USD841.30/mt in Q2-24), driven by lingering supply constraints. Accordingly, on a q/q basis, revenue increased by 23.4%.
Gross margin expanded by 25.71ppts y/y to 61.8%, reflecting a slower rise in the cost of sales (+36.0% y/y | Q2-24: +172.3% y/y) relative to topline growth.
The observed cost moderation reflects improved operational efficiency and proactive cost management, supported by a more stable naira and easing inflationary pressures, particularly in fertiliser-related inputs.
EBITDA (+29.48ppts y/y) and EBIT (+31.34 ppts y/y) margins expanded to 51.2% and 49.3%, respectively, despite a 56.7% y/y uptick in operating expenses.
The increased OPEX is likely linked to operational scale-up expenses to support growing production volumes.
OKOMUOIL recorded a net finance cost of N515.52 million in Q2-25 (vs net finance income of N570.65 million in Q2-24), driven primarily by a sharp 89.0% drop in exchange loss to N297.17 million (Q2-24: N2.70 billion), further supported by a mild climb in interest on long-term loans (+0.3% y/y to N203.62 million), despite higher bank charges (+67.9% y/y to N45.90 million).
Ultimately, profit before tax increased by 458.9% y/y to N34.85 billion in Q2-25 (Q2-24: N6.24 billion). Following a tax expense of N9.05 billion (Q2-24: N1.12 billion), profit after tax came in at N25.80 billion (Q2-24: N5.11 million).
Over the rest of the year, the company expects steady resilience, supported by strong domestic pricing dynamics, sustained cost efficiency, and a more stable currency environment, which should keep exchange rate losses at bay.
As at close of trade Friday shares of the firm shares traded at N998.00 on the NGX Exchange with N952 billion in market capitalization.
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