Presco Plc has published its audited financial results for the year ended December 31, 2025, reporting a pre-tax profit of N177.98 billion, indicating a 57.4% increase from N113.22 billion recorded in 2024.
The result filed to the Nigerian Exchange on Friday, May 1, 2026, shows a strong performance driven by robust growth in core palm oil revenues, supported by higher product prices, increased production capacity, and strategic expansion across its operations.
The agro-allied company has proposed a final dividend of N14.66 per 50 kobo share, which, when combined with interim dividends already paid, brings the total dividend for the year to N44.66 per share, subject to shareholder approval at the Annual General Meeting (AGM).
Key highlights (2025 vs 2024):
- Revenue: N330.64 billion, up 59.3% YoY
- Other income: N7.77 billion, up 98.7% YoY
- Raw materials and consumables: N88.46 billion, up 35.0% YoY
- Operating costs: N62.17 billion, up 48.5% YoY
- Employee benefits expenses: N25.56 billion, up 61.5% YoY
- Income tax expense: N56.63 billion, up 59.8% YoY
- Pre-tax profit: N177.98 billion, up 57.4% YoY
- Post-tax profit: N121.35 billion, up 55.9% YoY
- Retained earnings: N121.35 billion, up 55.9% YoY
- Earnings per share: N12,064.67, up 58.8% YoY
- Total assets: N631.77 billion, up 30.3% YoY
- Total liabilities: N275.25 billion, up 27.9% YoY
- Shareholders’ equity: N433.62 billion, up 28.9% YoY
Driving the numbers:
Analysis of the company’s performance shows that revenue growth was primarily driven by its core palm oil business, particularly the sale of crude palm oil (CPO) and palm kernel oil (PKO).
- Revenue from crude palm oil surged by 70.5% to N243.27 billion, up from N142.78 billion in 2024, making it the largest contributor to total earnings.
- Palm kernel oil revenue increased by 36.2% to N47.12 billion from N34.60 billion in the prior year, reinforcing the strength of the company’s core product lines.
Overall revenue rose by 59.3% to N330.64 billion, supported by:
- Higher global prices for palm oil and related products
- Increased production capacity driven by plantation expansion and new processing equipment
- Strategic acquisitions, including an increased stake in the Ghana Oil Palm Development Company and the acquisition of Saro Oil Palm Limited.
In addition to core operations, the company recorded strong contributions from other income sources, including foreign exchange gains and fair value gains on biological assets, although the primary driver of growth remained its palm oil segment.
- On the cost side, raw materials and consumables rose by 35% to N88.46 billion, reflecting higher production volumes.
- Operating costs increased by 48.5% to N62.17 billion.
- Employee benefit expenses also climbed significantly by 61.5% to N25.56 billion, indicating rising labour and administrative costs associated with expansion.
- Despite these cost pressures, strong top-line growth supported profitability, with pre-tax profit rising by 57.4% to N177.98 billion.
After income tax expense which increased sharply by 59.8% to N56.63 billion, post-tax profit settled at N121.35 billion, up 55.9% year-on-year, reflecting solid operational performance.
Balance sheet position:
Presco Plc recorded strong balance sheet expansion in 2025, driven by aggressive investments and acquisitions, although rising costs and cash outflows posed short-term pressures.
- Total assets grew by 30.3% to N631.77 billion, largely supported by a 46.6% surge in non-current assets to N446.03 billion, reflecting significant capital deployment into property, plant, and equipment, as well as strategic acquisitions.
- Total liabilities increased by 27.9% to N275.25 billion, driven by higher borrowings and obligations tied to expansion projects.
- Borrowings rose by 35.2% to N12.73 billion, with interest expenses also increasing significantly by 63.1% to N4.32 billion, reflecting the higher cost of financing.
- Despite this, shareholders’ equity climbed 28.9% to N433.62 billion, supported by a 55.9% rise in retained earnings, reflecting strong profitability.
Capital expenditure rose by 33.3% to N79.16 billion, while acquisitions consumed N163.18 billion in cash, significantly weighing on liquidity.
Market reaction
The market is yet to react to the dividend announcement, as the results were released on Friday, May 1, a public holiday in celebration of Workers’ Day.
- When trading resumes, the stock is expected to respond to the strong earnings and dividend declaration.
- Presco closed its last trading session on April 30, 2026, at N2,300 per share on the Nigerian Exchange Limited.
- The stock has gained 58.6% year-to-date from its opening price of N1,450, ranking among the top-performing equities on the Exchange.
Presco is currently among the most valuable stocks on the Exchange, with a market capitalisation of approximately N2.68 trillion.
What you should know
Presco Plc’s strong FY2025 performance was underpinned not just by robust earnings but by an aggressive expansion strategy aimed at scaling production and consolidating market leadership.
The company deepened its footprint with the acquisition of over 10,000 hectares of oil palm estates in Nsádop and Boki, significantly expanding its plantation base and strengthening its ability to meet rising domestic demand for edible oils.
It had launched a N236.67 billion rights issue targeted at funding acquisitions and capital projects, highlighting a deliberate push to accelerate growth, expand processing capacity, and strengthen its integrated value chain.
However, this expansion-led growth has come with rising operating costs, increased borrowings, and higher tax expenses as trade-offs, and could weigh on margins in the near term.
Going forward, Presco’s ability to efficiently integrate new assets, manage financing costs, and sustain strong output from its expanded plantation base will be critical to maintaining profitability and delivering long-term value to shareholders.
