Since 2023, Nigeria’s business environment has been defined by significant challenges, including high inflation, fluctuating interest rates, and volatile exchange rates.
However, relative stability is beginning to emerge in 2025, as reflected in the Q1 and Q2 results of companies.
Amidst this volatility, the palm oil sector has remained attractive to investors, largely due to the persistent gap between high demand and insufficient local supply.
Within this space, two companies dominate Okomu Oil and Presco Plc.
Both have demonstrated resilience in navigating the economic headwinds, posting strong half-year 2025 performances.
Yet, as is often the case, variations exist in how each company performed.
While Presco Plc leads in revenue, asset base, shareholders’ funds, profitability, and market capitalization, Okomu Oil stands out for its better efficiency, lower leverage, stronger return on equity, and healthier liquidity.
Presco Oil still sells the most oil
When it comes to selling palm oil, Presco remains the big player.
In 2024, it generated N208 billion from the sale of crude and refined products, and in just the first half of 2025, it has already achieved over 95% of that figure, with revenue hitting N198 billion.
This far outpaces Okomu Oil, which recorded about N130 billion in revenue for the same period.
Together, both companies delivered a combined revenue of N328.57 billion in H1 2025, representing a remarkable 102% year-on-year growth. Of this total, Presco accounted for 60.5%, while Okomu contributed 39.5%.
Their H1 2025 combined revenue is already over 98% of their full-year 2024 figure, underscoring the strong growth momentum in the sector.
Notably, while Presco led in revenue, Okomu Oil incurred higher direct costs relative to its sales, which weighed on its profitability at the gross level.
Okomu reported a gross profit margin of 66%, compared to Presco’s impressive 87%.
This difference highlights Presco’s stronger cost efficiency and pricing power, giving it a clear edge in terms of extracting value from its sales.
That said, even at 66%, Okomu’s margin remains very healthy by industry standards, reinforcing the attractiveness of the palm oil business model.
Both companies operate at levels of profitability that are rarely seen in other sectors of the Nigerian economy, where margins are typically squeezed by inflation, rising input costs, and foreign exchange pressures.
In essence:
- Presco: Revenue leader + cost-efficient operator = stronger gross margin.
- Okomu Oil: Slightly less cost-efficient but still delivers excellent margins.
Profitability
In absolute terms, Presco once again led the pack, posting a pre-tax profit of N112 billion compared to Okomu’s N67 billion. This reinforces Presco’s dominance in scale and earnings power.
However, when viewed through the lens of growth, Okomu Oil outperformed. Its pre-tax profit surged by 129% year-on-year, slightly ahead of Presco’s 121% growth rate.
Combined, the two palm oil giants generated a remarkable N179 billion in pre-tax profit for H1 2025, with Presco contributing 63% and Okomu 37%.
This dynamic suggests that while Presco remains the more profitable company in size, Okomu is growing faster, narrowing the gap and signaling strong momentum in its operations.
While Presco recorded higher revenue, Okomu Oil cost of sales accounted for 63% of the combined cost of sales of N69.398 billion, while Presco accounted for 37% reaching N25.491 billion against Okomu’s N42.907 billion in H1 2025.
Market Performance & Valuation
On the stock market, both companies have been huge winners this year. Presco’s share price has jumped by 212% in 2025, lifting its market value to about N1.48 trillion. Okomu Oil is not far behind, with a 130% gain and a market value of N973 billion.
Now, let’s look at how the market values them:
- Investors pay N11 for every N1 of Presco’s profit, while they pay a bit more N14 for Okomu’s profit.
- On book value (what the companies are worth on paper), Okomu trades at 12 times, while Presco trades at 6.4 times.
- On sales, Okomu again looks more “expensive” at 5.3 times sales, compared to Presco’s 4.6 times.
- Dividend yields are almost the same: Okomu at 2.94% and Presco at 2.84%.
What This Means
The stock market is telling a story:
- Presco is the giant bigger company, cheaper to buy into, and still growing fast.
- Okomu is the smaller premium play, but investors are willing to pay more for each naira of its earnings and sales because it is more efficient and delivers higher returns.
Who leads?
From the numbers, Presco clearly leads the sector in size and scale. It sells more oil, generates more revenue, posts higher absolute profits, and commands the largest market capitalization. Its efficiency in managing costs also gives it stronger margins, making it the dominant force in the palm oil space.
Okomu Oil, on the other hand, leads in efficiency and shareholder returns. It runs a leaner balance sheet with far less debt, grows profits faster, and delivers higher returns on equity. Investors are willing to pay a premium for Okomu because of this strength, even though it is the smaller of the two.
