Presco PLC has announced a full-year pre-tax profit of N128 billion in its latest financial report, released on the Nigerian Exchange (NGX) on January 31, 2025.
This marks a strong 156.05% increase in full-year pre-tax profit compared to the N50 billion reported for 2023, with the fourth quarter alone seeing an impressive N60.9 billion—up 233.46% from the N18.2 billion recorded the previous year.
Revenue for the fourth quarter was N69.5 billion, a substantial 172.34% increase from N25.5 billion in the corresponding quarter of 2023.
Total revenue for fiscal year 2024 reached N198.1 billion, a 93.48% increase from N102.4 billion in the previous year, with 90.2% of sales coming from Nigeria and the rest from Ghana.
Key highlights
- Revenue: N198.1 billion, +93.48% YoY
- Cost of sales: N63 billion, +68.66% YoY
- Gross profit: N135 billion, +107.74% YoY
- Administrative expenses: N33 billion, +39.91% YoY
- Selling and distribution expenses: N2.8 billion, +81.12% YoY
- Exchange gain: N6.1 billion, +40.39% YoY
- Gain on biological assets revaluation: N24.8 billion, +102.86% YoY
- Finance cost: N12.7 billion, +38.89% YoY
- Finance income: N2.6 billion, +5,467.18% YoY
- Pre-tax: N128 billion, +156.05% YoY
Commentary
A review of Presco’s full-year financial report reveals a notable revenue figure of N198.15 billion, marking a 93.48% increase from N102.4 billion in 2023.
- Sales of crude and refined products accounted for 99.92% of total revenue at N198.14 billion, while mill by-products contributed only N15.7 million.
- Regionally, Nigeria represented 90.2% of total sales, generating N179.1 billion, with Ghana contributing N18.9 billion.
However, the group faced a significant rise in cost of sales, which climbed 68.66% from N37.3 billion to N63 billion.
- Mill processing, refinery, and packaging costs accounted for 47.8% of this total, while maintenance of mature plantings, harvesting, and laboratory expenses represented 26.3%.
- Employee costs made up 14.95%, with other costs comprising the remainder.
Despite the increased costs, Presco’s gross profit rose by 107.74% to N135 billion, up from N65 billion the previous year.
- Administrative expenses increased by 39.91% to N33 billion, driven mostly by staff costs, management fees, and transport.
- Selling and distribution expenses rose by 81.12% to N2.8 billion, primarily due to road transport of finished products, which accounted for N2.6 billion of this total.
On a more positive note, Presco reported exchange gains of N6.1 billion for FY 2024, a 40.39% increase from the prior year. Additionally, the gain from biological asset revaluation increased by 102.86% to N24.8 billion compared to N12.2 billion reported in 2023.
Finance costs increased by 38.89% year-over-year to N12.7 billion, primarily due to N12 billion in loan interest. In contrast, finance income surged by 5,467.18% to N2.6 billion, a dramatic rise from N48.1 million the previous year.
Nevertheless, Presco’s full-year pre-tax profit increased by 156.05%, from N50 billion last year to N128 billion for FY 2024.
Asset position
The company reported a total asset figure of N422 billion for the full year, compared to N170.3 billion in 2023.
- Non-current assets amounted to N233.5 billion, up from N101.7 billion the previous year, with property, plant, and equipment making up 67.5% of this total, followed by intangible assets at 28.4%.
- Current assets also increased to N188.4 billion from N68.5 billion in 2023, primarily due to growth in biological assets and trade receivables.
