The Okomu Oil Palm has recorded a pretax profit of N34.09 billion in its unaudited Q1 2026 results filed on the Nigerian Exchange, marking a solid start to the year.
This represents a 5.88% increase from the N32.2 billion reported in the same period last year, supported mainly by lower sales costs and a stable revenue base.
Revenue for the quarter came in at N58.9 billion, slightly above N58.1 billion in Q1 2025, driven by oil palm and rubber sales, with local demand accounting for 92.9%.
A 24.5% decline in sales costs to N11.6 billion strengthened margins, which reflected on the bottom line, with earnings per share rising to N24.74 from N22.79, signalling improved returns for shareholders.
Key highlights (Q1 2026 vs Q1 2025)
- Revenue (Turnover): N58.9 billion, up 1.45% YoY
- Cost of Sales: N11.6 billion vs N15.4 billion
- Gross Profit: N47.2 billion, up 10.9% YoY
- Operating Expenses: N11.7 billion, up 22.83% YoY
- Operating Profit: N35.4 billion, up 7.44% YoY
- Pretax Profit: N34.09 billion, up 5.88% YoY
- Post-tax Profit: N23.6 billion, up 8.57% YoY
Driving the numbers
A closer look at revenue of N58.9 billion shows strong domestic traction, with sales within Nigeria rising to N54.7 billion from N50.7 billion in the prior year.
- Export sales, however, declined, contributing N4.1 billion compared to N7.3 billion in the same period last year, reflecting weaker international demand relative to the domestic market.
Despite the growth in revenue, the company recorded lower sales costs, which fell to N11.6 billion from N15.4 billion, helping to improve overall cost efficiency.
- This decline was largely driven by a reduction in oil palm production costs, which dropped to N8.1 billion in Q1 2026 from N12.04 billion recorded in Q1 2025.
As a result, gross profit rose to a strong N47.2 billion, marking a 10.9% increase from N42.6 billion recorded in the corresponding period last year.
However, net operating expenses climbed by 22.83% to N11.7 billion, which moderated gains and resulted in an operating profit of N35.4 billion, up from N33.02 billion.
After accounting for finance income of N1.05 million and finance costs of N1.3 billion, pretax profit settled at N34.09 billion, while profit after tax came in at N23.6 billion from N21.7 billion, with earnings per share at N24.7.
Balance sheet
On the balance sheet, fixed assets stood at N97.3 billion, slightly up from N97.02 billion, with biological assets at N85.4 billion remaining the largest component.
Current assets were led by inventory of N39.8 billion and cash and cash equivalents of N31.8 billion, bringing total current assets to N80.4 billion from N41.8 billion.
On the equity side, revenue reserves of N72 billion accounted for the bulk of total equity, which rose to N72.4 billion, reflecting a 48.35% year-on-year increase.
In terms of liabilities, trade payables of N59.9 billion represented the largest obligation on the company’s books.
Market reaction
Shares of the company are yet to react to the positive financials, as they traded flat during the April 30, 2026, session when the results were published.
Year-to-date, the stock has delivered a return of 59.82%, with shares currently priced at N1,750 per unit.
