Presco PLC has reported a massive 156% increase in pre-tax profit, reaching ₦128 billion ($90 million) in 2024, driven by soaring revenue and higher gains from biological asset revaluation. The company’s revenue surged by 93% to ₦198.1 billion ($140 million), reflecting strong demand for its crude and refined palm oil products.
Key Financial Highlights (2024 vs. 2023):
•Total Revenue: ₦198.1 billion ($140 million) (+93%)
•Gross Profit: ₦135 billion ($95 million) (+108%)
•Pre-Tax Profit: ₦128 billion ($90 million) (+156%)
•Net Exchange Gains: ₦6.1 billion ($4.3 million) (+40%)
•Gain from Biological Assets: ₦24.8 billion ($17.5 million) (+103%)
•Finance Costs: ₦12.7 billion ($9 million) (+39%)
•Total Assets: ₦422 billion ($297 million) (+148%)
What’s Driving Presco’s Growth?
Strong revenue from crude and refined products – ₦198 billion ($140 million) came from core sales, with Nigeria contributing 90% and Ghana accounting for the rest.
Higher profits from biological asset revaluation – Up 103%, boosting overall earnings.
Exchange rate gains – ₦6.1 billion ($4.3 million) was earned due to currency fluctuations.
Surge in finance income – ₦2.6 billion ($1.8 million), an over 5,400% increase from 2023.
Challenges to Watch:
Rising production costs: Cost of sales jumped 69% to ₦63 billion ($44 million), reducing profit margins.
Higher finance costs: Interest expenses rose 39% to ₦12.7 billion ($9 million) due to increased loan repayments.
Growing operational expenses: Administrative costs climbed 40%, mainly due to staff salaries and transport expenses.
Investor Takeaways
Presco PLC’s strong earnings growth, increased asset value, and rising sales make it a promising company for investors. However, rising costs and loan interest payments remain key factors to monitor in 2025.
