Okomu Oil Palm released its 1st quarter 2013 earnings with revenue dropping 35% to N1.8billion. Gross Profit margin also dropped 50% to N1.2billion during the period. Pre-tax profits at the end of the period was N687million, 55% lower than the N1.5billion posted at the same period last year.
- Gross profit margins was 65% better than last year’s despite a a slight rise in cost of sales and drop in revenues. However, this was not able to cushion the sharp drop in revenues
- Whilst S,G &A (Operating Expenses) was lower this quarter than the last, it sliced a larger chunk of gross profits than the prior year.
- The sharp drop in revenue may be attributed to the floods of last year which may have affected exports and local sales
- The company has very little debt as it was just 10% of equity. They recently obtained a N1.96billion agricultural loan from Access bank which may see interest rates rise in the coming quarters
- Their share price jumped 6% to N106 despite weak earnings indicating investors believe this result was just a blip.
Okomu Oil Palm Q1 2013 earnings was posted on the website of the NSE