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Okomu Oil Palm Company Plc, chaired by Nigerian lawyer and businessman Gbenga Oyebode, reported a profit after tax of N63.53 billion in 2025, up from N39.95 billion in 2023. Gross profit rose 71 percent to N139.55 billion, driven by stronger palm oil prices and improved margins.
Revenue for the year climbed 52 percent to N198.15 billion, buoyed by a 60.5 percent increase in crude palm oil sales to N172.6 billion. The rubber segment contributed N25.5 billion, a 13.3 percent gain, representing 12.9 percent of total revenue.
Costs increased 21 percent to N58.59 billion, reflecting higher input and operating expenses. Costs rose slower than revenue, allowing margins to expand. Analysts attributed this to the combination of strong pricing and economies of scale.
Finance income fell to N11.07 billion from N13.9 billion, while finance costs jumped to N13.77 billion from N10.07 billion, turning prior net gains into a slight net finance loss. Despite this, profit before tax grew 63.6 percent to N87.3 billion, pushing the overall margin up by three percentage points to 44.1 percent.
Weaker Fourth Quarter
The fourth quarter, however, showed signs of softness. Revenue declined 7.3 percent to N24.2 billion, while general expenses rose 14.1 percent to N20.3 billion. Operating profit fell 52.9 percent to N3.9 billion, and EBIT margin dropped 15.7 percentage points to 16.2 percent.
Net finance costs of N703.3 million further compressed margins, with net profit margin declining to 13.2 percent from 44 percent a year earlier. Earnings per share for Q4 settled at N3.36, compared with N12.06 for the full year 2024.
Okomu Oil’s performance highlights the resilience of Nigeria’s palm oil sector amid fluctuating global prices. The company has continued to leverage both volume growth and improved pricing to maintain profitability.
The increase in global palm oil prices has been a key factor, offsetting rising input and operational costs. The rubber business also contributed modest gains, providing diversification in revenue streams.
Investors and market watchers note that while quarterly volatility persists, the overall annual performance reinforces Okomu Oil’s position as a leading player in Nigeria’s agro-industrial sector.
The company filed the unaudited results with the Nigerian Exchange on Friday, confirming the figures. Analysts expect continued growth in the palm oil segment to support earnings, though cost pressures and seasonal variations could impact quarterly performance.
Okomu Oil has steadily expanded its production capacity over the years, focusing on both palm oil and rubber, to meet domestic demand and explore export opportunities.
