Presco Posts ₦69.24bn Q1 Pre-Tax Profit As Lower Borrowing Costs Boost Earnings

May 07, (THEWILL) — Presco Plc has reported a pre-tax profit of ₦69.24 billion for the first quarter ended March 31, 2026, representing an 18.2 percent increase from ₦58.61 billion recorded in the corresponding period of 2025.

The agro-allied company’s unaudited financial results filed with the Nigerian Exchange (NGX) showed improved operational efficiency, stronger finance income, and significantly lower borrowing costs during the period.

Revenue rose modestly by 7.5 percent year-on-year to ₦100.86 billion, driven largely by sales of crude and refined palm oil products, which contributed ₦95.80 billion, or about 95 percent of total revenue. Fresh Fruit Bunches generated ₦4.94 billion, while Nigeria remained the company’s largest market with ₦84.37 billion in revenue. Ghana contributed ₦16.49 billion.

Presco’s gross profit climbed to ₦91.29 billion, translating to a strong gross margin of 90.5 percent, supported by a 4.8 percent decline in cost of sales to ₦9.58 billion. Other income also surged by 78.8 percent to ₦2.38 billion.

Finance costs dropped sharply by 28.5 percent to ₦7.53 billion following a reduction in borrowings, while finance income jumped to ₦5.13 billion from ₦59.13 million, largely due to earnings from fixed deposits.

Despite the strong operational performance, post-tax profit rose by only 3.5 percent to ₦49.26 billion as income tax expenses surged by 81.2 percent to ₦19.99 billion. Earnings per share also declined to ₦42.22 from ₦47.58.

The company strengthened its balance sheet during the quarter, with borrowings declining by 56.9 percent to ₦136.63 billion and total liabilities falling by 32.7 percent. Shareholders’ equity increased by 7.8 percent to ₦477.07 billion.

Ogochukwu Onwaeze, THEWILL

Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.