Okomu Oil Palm, Nigeria’s premier oil palm production company, unveiled its financial results for the fiscal year 2023 recently, showcasing an impressive performance characterized by substantial growth across key financial aspects.
The company, headquartered in Edo State, demonstrated resilience and operational excellence amidst challenging market conditions, solidifying its position as a leading player in the Nigerian agribusiness landscape.
Okomu Oil Palm reported a noteworthy pre-tax profit of N32.9 billion for the fiscal year 2023, marking a remarkable 43.4% surge from the N22.9 billion recorded in the previous year affirming the correctness of its operational efficiency and strategic management initiatives.
The company witnessed substantial increases in turnover, gross profit, and profit on continuing operations before tax, demonstrating its ability to adapt to challenges and effectively manage its finances.
Turnover rose by 43.4 percent to N74.99 billion in 2023, up from N59.25 billion in the previous year, while gross profit rose by 20.1 percent to N47.38 billion from N39.45 billion in 2022.
This impressive growth shows its commitment to delivering value to its stakeholders while leveraging its strong market position and operational capabilities.
In Q4 2023, Okomu Oil Palm recorded a turnover of N14.3 billion, reflecting a remarkable year-on-year growth of 58.2 percent from the N9.07 billion recorded in Q4 2022. This quarterly performance shows the company’s ability to capitalize on market opportunities and drive sustained growth momentum.
Socfinaf SA, a Luxembourg-based company, as the majority shareholder of Okomu Oil Palm, holding a significant 62.95% stake, the Edo State Ministry of Finance holds a 1.23% shareholding in the company, reflecting a strong connection to the local community and government.
Since its inception in 1976, Okomu Oil Palm has undergone significant expansion. The company’s planted oil palm areas have grown from an initial 12,500 hectares to 19,061 hectares, with an additional 7,335 hectares dedicated to rubber plantation. As of December 2022, Okomu Oil Palm produced approximately 54,091 tonnes of palm oil and 8,124 tonnes of dry rubber, highlighting its substantial production capacity and contribution to Nigeria’s agricultural sector
With a strong foundation, robust market position, and ongoing expansion initiatives, the company is well-positioned to capitalize on emerging opportunities and drive sustainable growth with its financial performance standing as a testament of its capabilities.
