Nigeria’s agro-allied giant based in Edo State, Okomu Oil Plc, had a good outing in 2023, as increased production bolstered by favourable prices domestically boosted it top and bottom lines. According to the company’s financial statement for the year ended 31 December 2023, revenue from contracts with customers surged by 27 percent to N75 billion, up from N59.32 billion in 2022.

Profit before taxation increased by 44 percent to N33.04 billion in contrast to N23.52 billion made in the previous year, just as profit after tax increased by 27 percent to N20.65 billion, up from N16.23 billion from the previous year.

Prices of palm oil products surged in 2023 in Nigeria caused by higher inflationary trend occasioned by the reforms introduced by the new federal government, especially the removal of petrol subsidy and floating of the naira. Those policies in some way assisted local farmers in terms of more revenues from sales of agricultural produce.

Okomu produces the following palm products in a sustainable manner and they are Crude Palm Oil (CPO) which is naturally reddish in colour as it contains high amounts of beta-carotene; Palm Kernel (PK) is the seed of the oil palm fruit; Palm Kernel Oil (PKO) is extracted from the seeds (nuts) of the oil palm, and Palm Kernel Cake (PKC) which is a by-product of palm oil production and are mostly used as a source of energy and fiber in poultry, pig and fish rations.

“Last year, we must say the business environment was very good. Partly, it was due to the fact that we had good yields. Secondly, we also have good management; my management and staff work very hard to keep cost down to make sure that what we did, we did right and lastly my board were very sensitive to the fact that things were not easy and they also made sure that the environment in which we work was conducive to have been able to get that kind of results,” Dr Graham Hefer, Okomu Oil’s CEO said in an exclusive interaction with the Nigerian Observer.

He added that “Obviously, the prices were good. So, it was a perfect storm for us in that regard. So, we are very lucky due to hard work. Going forward, we hope that there is another perfect storm every year obviously prices may not be moving along with disposable income as we have been seeing, so we may see that the margins maybe slightly squeezed this year but we are hoping that in general and of course our people carry on with the good work that they have been doing.”

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Further analysis of its 2023 financials revealed that Okomu Oil generated its revenue from palm oil produce, N67.04 billion (N53.75 bn in 2022), rubber sales, N7.95 billion (N5.50bn in 2022), and pal oil processing, N120.37 million (N78.18m in 2022).

In terms of geographical markets, N67.16 billion of its revenue was realised from the domestic market, representing 89.4 percent compared to N53.83 billion that was made in 2022 from the same market representing 90.7 percent of the company’s revenue.

From the foreign market, Okomu Oil made N7.95 billion in 2023 or 10.6 percent of its total revenue, as against N5.50 billion in 2022 representing 9.3 percent of its previous year’s total revenue.

The board of directors of Okomu Oil Plc has recommended N14 per share as the final dividend

“In recognition of our company’s outstanding performance and as a testament to our steadfast dedication to rewarding our loyal shareholders for their ongoing trust and support, the Board of Directors will propose for your approval, the payment of a final dividend of ₦14.00 for every ordinary share of 50 kobo each. This final dividend, if approved, in addition to the paid-out interim dividend of ₦4.50 kobo amounts to a total dividend of ₦18.50 kobo for every ordinary share of 50 kobo each,” Okomu said.