…EBIT and EBITDA margins contracted by 218bps y/y and 515bps y/y to 96.7% and 85.6%, respectively
MON FEB 02 2026-theGBJournal| Presco Plc (PRESCO) reported revenue decline of 18.5% y/y in Q4-25 (2025FY: +59.6% y/y) primarily due to lower CPO prices (-10.0% y/y) during the period.
The earnings report published at close of trade on Friday, shows that across business segments, crude and refined product sales (-28.3% y/y | 99.9% of revenue) declined while mill by-products sales (+916.7% y/y | 0.1% of revenue) increased.
On a q/q basis, revenue declined by 25.2% to NGN56.69 billion (Q3-25: NGN75.76 billion).
Gross margin (-15.16ppts y/y) declined to 46.1% (2025FY: +146bps y/y to 68.9%) as cost of sales (+13.3% y/y) grew, while revenue declined. Notably, cost increases were primarily driven by higher production costs (+35.4% y/y) during the period.
Meanwhile, EBIT and EBITDA margins contracted by 218bps y/y and 515bps y/y to 96.7% and 85.6%, respectively, (2025FY: +296bps y/y and +396bps y/y to 68.1% and 64.7%, respectively), amid an 11.4% y/y increase in operating expenses.
PRESCO’s net finance costs surged by 330.6% y/y to N9.51 billion (vs N2.21 billion in Q4-24), driven primarily by a 216.2% y/y increase in finance cost.
The rise in finance costs is primarily attributed to a significant increase in interest expenses on loans and overdrafts (+211.9% y/y). For the 2025FY period, the company’s net finance cost increased by 184.9% y/y to N35.83 billion (2024FY: N12.57 billion).
Overall, PRESCO’s profit before tax declined by 36.0% y/y to N39.90 billion in Q4-25 (Q4-24: N60.97 billion), while profit after tax declined by 47.7% y/y to N27.46 billion (Q4-24: N52.51 billion), following a tax expense of N11.58 billion.
For 2025FY, profit after tax increased by 76.8% y/y to N138.12 billion (2024FY: N78.10 billion).
Standalone EPS came in at N27.46 (Q4-24: N52.51), undermined by a 18.5% y/y decline in revenue and higher net finance costs (+330.6% y/y).
For 2025FY, EPS surged by 81.6% y/y to N134.38 (2024FY: N74.01).
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