Inside the numbers: Presco vs Okomu

By Sofiyyah Layole

Nigeria’s palm oil market remains one of the most competitive segments of the country’s agribusiness landscape. We examine two industry leaders, Presco Plc and Okomu Oil Palm Plc, contrasting their distinct paths to growth based on their Q3 2025 results, which reaffirm their respective profitability.

Scale vs. Efficiency: The topline contrast

The topline numbers clearly show a difference in scale. Presco's group revenue of ₦274.50 billion substantially overshadows Okomu’s ₦173.95 billion, reflecting Presco's larger operations and deeper vertical integration across the palm oil value chain. 

Presco operates on a broader front, including refining, specialty fats production, and regional exports, while Okomu’s business remains more focused on crude palm oil and rubber.

However, the more compelling story lies in how effectively each company converts revenue into profit. Presco’s gross profit of ₦202.09 billion reflects an impressive 74% margin, significantly higher than Okomu’s ₦112.08 billion (a 64% margin). This 10-point gap suggests Presco's downstream activities and export mix deliver stronger value extraction per naira earned, while Okomu's production-focused model, though robust, offers less scope for premium pricing.

Operating performance and profitability

Operating performance follows this pattern of bigger engine, bigger output. Presco reported higher total operating expenses (administrative and selling) at ₦43.61 billion, compared to Okomu’s leaner cost base of ₦25.97 billion.

Despite these higher expenses, Presco maintained a superior profitability advantage, achieving a pre-tax profit of ₦139.65 billion against Okomu’s ₦84.10 billion.

Ultimately, Presco’s integration strategy resulted in a nearly double net profit: ₦110.79 billion versus Okomu’s ₦60.33 billion. This translated directly to investor returns, with Presco's Earnings Per Share (EPS) of ₦110.79 significantly surpassing Okomu’s ₦63.25.

Balance sheet and risk profile

The balance sheet data underlines the contrasting business philosophies. Presco’s substantial total assets of ₦612.82 billion and shareholders’ funds of ₦202.23 billion showcase a deep capital structure, enabling long-term expansion. 

Okomu, with assets of ₦135.40 billion and equity of ₦62.39 billion, operates on a smaller, leaner financial base, reflecting its more measured approach.

However, Presco’s scale comes with higher leverage, with its borrowings standing significantly above Okomu’s a common trade-off for rapid scaling that often relies on external financing.

Conversely, Okomu’s lower debt profile offers greater flexibility and resilience against interest rate volatility or market shocks a quiet strength that appeals to investors with a lower risk appetite.

Operational strategy: Integration vs. Focus

Presco's operational strategy is defined by integration. It manages thousands of hectares of plantations across Edo and Delta States, backed by modern processing mills and a refining complex that converts crude palm oil into specialty fats for local and export markets. Okomu, while also maintaining extensive plantations in Edo State, prioritizes efficient plantation management and a strong focus on high-yield palm and rubber production.

While Presco’s vertical integration yields an edge in value addition, Okomu's emphasis on operational discipline ensures steady output and product quality.

Conclusion

The comparison between Presco and Okomu is a study in ambition versus restraint. Presco’s aggressive integration strategy and international market positioning have made it a dominant force, achieving industry-defining profitability fueled by scale and scope.

Okomu, in contrast, embodies steady execution, smaller in footprint but consistent in delivery, with strong fundamentals and less debt exposure.

For stakeholders monitoring Nigeria’s agribusiness space, both companies exemplify different forms of success. Presco demonstrates the power of scale and diversification in a volatile market, while Okomu reinforces that discipline and focus still pay robust dividends. In this quarter’s performance review, Presco’s superior profitability, market reach, and returns per share secure its position as the quarter's leading performer.