October 26, (THEWILL) — Okomu Oil Palm Company Plc has reported a 49 percent year-on-year growth in its profit before tax (PBT) for the third quarter of 2025, reaching ₦17.05 billion compared to ₦11.41 billion in the same period of 2024. This surge reflects stronger sales performance, improved production efficiency, and stable cost management across its operations.
The company’s unaudited financial statements for the quarter show that turnover climbed to ₦44.12 billion (2025) from ₦28.94 billion (2024), representing a 52.3 percent increase. Similarly, profit after tax (PAT) rose from ₦8.14 billion (2024) to ₦12.80 billion (2025), translating to a 57 percent growth within the same period.
Earnings per share (EPS) also improved significantly to ₦13.41 from ₦8.54, underlining the company’s strengthened profitability and efficient use of shareholder capital. The company has subsequently declared an interim dividend, maintaining its track record of consistent shareholder returns.
Performance Drivers:
Okomu’s performance was buoyed by strong domestic demand for refined palm oil and rubber products, supported by moderate cost of sales growth relative to revenue expansion. The company also benefited from favourable weather conditions that boosted plantation yield, improved mill throughput, and steady foreign demand from regional markets.
According to Dr. Graham Hefer, Managing Director of Okomu Oil, the company’s progress underscores its focus on efficiency and local value creation.
“Our focus has been on deepening local content and strengthening backward integration to reduce reliance on imported raw materials,” Hefer said. “This approach has shielded us from the worst effects of exchange rate volatility and global supply disruptions.”
Additionally, the company’s efficient cost containment strategy including reduced finance costs and better energy management helped sustain margins despite inflationary pressures and currency volatility.
Industry Context:
The broader agro-manufacturing sector continues to show resilience amid a challenging macroeconomic backdrop. While rising energy and logistics costs have constrained smaller producers, Okomu’s vertically integrated operations and stable raw material base have positioned it as one of the sector’s most profitable firms.
The Manufacturers Association of Nigeria (MAN) has repeatedly emphasised that high production and logistics costs remain a major drag on the competitiveness of local manufacturers.
“The high cost of production remains a major obstacle to the competitiveness of made-in-Nigeria goods,” MAN noted, adding that consistent policy reforms and energy cost relief are essential for sustaining sector-wide recovery.
The company’s growth aligns with Nigeria’s push to deepen domestic agro-processing and reduce reliance on imported food products, a key priority under the government’s “Nigeria First” policy framework. Continued investment in plantation expansion and technology-driven processing is expected to support sustained earnings into Q4 and FY 2025.
Investor Sentiment and Market Impact:
The company’s strong quarterly showing has reinforced investor confidence in the agricultural and manufacturing segments of the Nigerian Exchange (NGX). Okomu’s steady profit growth and consistent dividend declaration continue to make it a preferred stock for income-focused investors seeking stability amid market volatility.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), noted that the success of firms like Okomu highlights the importance of a more supportive business environment.
“Logistics inefficiencies and high production costs continue to pose obstacles to Nigeria’s manufacturing recovery constraints that agribusinesses like Okomu must contend with to sustain growth,” Yusuf said.
The result also signals improving sentiment toward listed agribusinesses, especially as local producers gain from exchange rate stabilization and easing inflationary trends. The stock’s performance could further stimulate renewed interest in the consumer goods and industrial sectors, both of which rely on agro-based inputs, thereby broadening market activity in the weeks ahead.
With growing earnings momentum and prudent capital allocation, Okomu Oil appears well positioned to close 2025 with stronger fundamentals. If commodity prices remain stable and FX liquidity continues to improve, the firm’s fourth-quarter performance could surpass last year’s results reinforcing its reputation as a key driver of value in Nigeria’s agro-industrial landscape.
Ogochukwu Onwaeze
