Presco Group strengthens market position with robust profit growth

By Esther Agbo

Presco Group Plc, a key player in Nigeria’s agro-industrial sector, has reported an impressive profit after tax of N38.8 billion for the first half of 2024, marking a significant 157 percent year-on-year increase from N15.1 billion in the corresponding period of 2023.

This substantial profit surge highlights the company’s growing influence and strategic expansion in the domestic market.

The company’s financial results, recently filed with the Nigeria Exchange Limited, reveal a strong revenue growth of 83 percent, reaching N88 billion compared to N48.1 billion in the first half of 2023.

This increase was largely driven by the company’s successful sales of crude in refined products and its expansion efforts across Nigeria’s market.

Despite facing rising costs, including a 38 percent increase in the cost of sales from N16.2bn to N22.4 billion due to the maintenance of matured plantings and mill processing and refinery operations, Presco Group managed to maintain a strong gross profit.

The gross profit for the period stood at N65.6 billion, reflecting a 106 percent increase from N31.9 billion in the first half of 2023.

Operational expenses also saw moderate increases. Selling and distribution expenses rose by 10 percent to N4.4 billion, and finance costs doubled to N11.6 billion, indicating the company’s aggressive growth strategies and associated financial commitments.

Presco’s profit before tax reached N45.2 billion, a 116 percent rise from N20.9 billion in the previous year, underscoring the company’s ability to navigate the challenging economic landscape.

However, this growth was accompanied by an increase in tax expenses, which doubled to N11.6 billion from N5.8 billion in the first half of 2023.

The company’s shareholders had earlier approved a N227 million remuneration package for the directors, aligning with the company’s ambitious growth and expansion plans.