In 2025, Nigeria’s two palm oil giants, Okomu Oil Plc and Presco Plc, once again demonstrated their dominance in the agricultural landscape.
Riding on the back of elevated palm oil prices, resilient domestic demand, both companies delivered strong results in the first nine months of 2025, as reflected in their unaudited nine-month 2025 results for the period ended September 2025
But who performed better and offers better value to investors?
Financial performance and earnings strength
Okomu Oil Plc maintained its growth momentum, closing the first nine months of 2025 with N174.0 billion in revenue, up 63% year-on-year.
- Profit after tax grew by 113% YoY to N60.33 billion in the first 9 months of 2025, surpassing the 2024 full-year profit by about 51%.
- Earnings per share surged to N63.25, marking a 113% YoY growth.
- Net profit margin stood at 34.7%. up 27%nYoY
- Okomu paid out an interim dividend of N40 for the 9 months, reflecting a 63% payout ratio
Presco Plc, on the other hand, delivered stronger numbers across all fronts.
- Revenue soared 113.5% year-on-year to N274.5 billion.
- Profit after tax grew by 114% YoY to N110.786 billion, beating the 2024 full-year profit by 6%.
- EPS stood at N110.79, up 114% YoY.
- Net profit margin increased marginally by 0.24% to 40.4%.
- Presco paid out N30 interim dividend, reflecting a 27% payout ratio
Over the longer term, Presco Plc has compounded its earnings strength more effectively, building a retained earnings base of N195.52 billion, more than three times that of Okomu’s N60.87 billion.
On growth trajectory, Okomu Oil has expanded faster, recording a compound annual growth rate (CAGR) of 68% in profit over the past five years, compared to Presco’s 49%. However, in absolute terms, Presco remains the clear leader, generating a cumulative N285 billion in total profit over the same period, far exceeding Okomu’s N91 billion.
Verdict:
- Presco Plc leads in terms of both scale and efficiency, boasting higher profit margins, stronger earnings, and a larger retained earnings base. However, its 27% dividend payout ratio reflects a conservative, some might say stingy, approach to shareholder rewards.
- Okomu Oil, though smaller in scale, has delivered faster profit growth and demonstrated a stronger commitment to rewarding shareholders, with a generous payout ratio of about 63%. This highlights Okomu’s investor-friendly stance, aligning shareholder returns more closely with its record profitability.
Share price performance
Reflecting these stellar results, both companies’ share prices have rallied sharply in 2025, significantly outperforming the broader NGX All-Share Index, which is up 44.74% year-to-date.
- Okomu Oil has gained 130% YtD, currently trading at N1,020 per share, about 97% of its 52-week high signaling strong investor confidence but suggesting limited short-term upside.
- Presco Plc, meanwhile, has recorded a 212% YtD rise, closing at N1,479.90 per share and trading around 96% of its 52-week high, reflecting even stronger market momentum and sustained bullish sentiment.
In terms of trading liquidity:
- Presco is the 106th most traded stock on the NGX over the past three months, with 13.9 million shares traded valued at N19.9 billion.
- Okomu Oil Palm is the 97th most traded stock on the Exchange over the same period, with 21.2 million shares traded valued at N21.3 billion.
Verdict:
Both stocks have delivered outstanding share price performances in 2025, far outpacing the broader market.
In summary, Presco wins momentum and valuation strength, while Okomu stands out for liquidity and dividend appeal — giving investors two compelling, yet distinct, plays in the palm oil sector.
Balance sheet
Presco has been expanding rapidly, with its total assets growing by about 29%.
- However, most of this growth came from taking on more debt, which jumped by 188%.
- This pushed its debt-to-equity ratio to 79%, up from 26% last year — meaning it’s now more reliant on borrowed funds.
- This extra borrowing helped Presco boost its return on equity (ROE) to 54.78%, but it also made the company more exposed to debt costs, as seen in its lower interest coverage ratio of 5.54x.
- On the positive side, Presco became more efficient, with asset turnover improving to 0.45x, showing better use of its resources. Still, its higher debt level increases financial risk.
Okomu Oil Plc
Okomu took a more cautious approach.
- It cut its debt by 22% and grew its equity base by 12%, keeping its debt-to-equity ratio at just 8.93%, far below Presco’s.
- Even with less borrowing, Okomu achieved a remarkably high ROE of 96.7%, thanks to strong profits and efficient operations rather than leverage.
- Its interest coverage ratio jumped to 37.11x, showing that the company easily covers its interest expenses, a sign of financial strength and low risk.
Verdict:
Okomu Oil has a stronger balance sheet, low debt, high returns, and minimal financial risk.
Presco shows faster asset growth but relies heavily on debt, making its expansion more leveraged and riskier.
Valuation – Who’s cheaper and who rewards investors more?
When it comes to buying a stock, investors usually look at how much they’re paying for the profits, the company’s assets, and the dividends you’ll get.
Let’s see how Okomu Oil and Presco compare.
Okomu Oil Plc:
- Current price: N1,020 per share
- Earnings per share (TTM): N75.34 = P/E of 13.5x
- Book value per share: N90.40 = P/B of 11.3x
- 9-month Dividend N40 = Dividend yield of 3.92%
What this means: Okomu is a bit more expensive if you compare the price to earnings or assets. But it gives back more money to shareholders through dividends, making it attractive if you want a regular income.
Presco Plc:
- Current price: N1,479.90 per share
- Earnings per share (TTM): N153.37 = P/E of 9.6x
- Book value per share: N202.23 = P/B of 7.3x
- 9-month dividend: N30 = Dividend yield of 2.70%
What this means: Presco is cheaper relative to its profits and assets, giving investors more value for each naira spent.
The dividend is smaller, so it’s less rewarding in the short term but offers more potential for price growth.
Brilliant exposure to enhance the knowledge of stakeholders in the business of security.
Personality, I appreciate all the effort, gathering data for the critical analysis.
Please, do not relent.
Best of regards.
Thank you.