Okomu Oil Palm Company Plc says it has recorded its highest net profit of N39.9 billion in 2024, compared to N20.6 billion in 2023.
Mr Gbenga Oyebode, Chairman of the Board of Directors of Okomu Oil Palm Company, made this disclosure at the company’s 45th Annual General Meeting (AGM), on Thursday in Abuja.
Delivering the company’s annual report for 2024, he said that in spite of the challenges faced during the year, including an 80 per cent increase in costs among other difficulties, the company was able to navigate these headwinds successfully.
“The company’s net profit for 2024 on continuing operations increased by approximately 94 per cent, reaching N39.9 billion compared to N20.6 billion in 2023.
“This exceptional performance was mainly fueled by a sustained rise in the prices of our products. Crude Palm Oil (CPO) prices experienced approximately a 35 per cent year-on-year increase.
“This was coupled with a 194 per cent rise in rubber prices.
“Our results were significantly higher than last year, including increased profitability, increased revenue, and expansion of our plantation.
“We continue to plant and process oil palm and rubber. We export the rubber we produce, and our company continues to be a significant investor in Edo State by supporting our local communities and shareholders,” he said.
Speaking on the operational and economic environment for the year, he said geographical tensions and economic pressure dominated the global landscape in 2024.
“In Nigeria, the operating environment was exceptionally challenging and demanding, mainly due to several macroeconomic policies and market reforms implemented by the Federal Government in 2023.
“These resulted in the depreciation of the Naira, a surge in petrol prices, and persistently high inflation, reaching a 30-year peak of 34.8 per cent at the end of the year.
“This increased the already high cost of living, triggering fuel shortages, soaring food prices, escalating energy, and high transport costs.
“Likewise, the country’s debt service cost remained unsustainably high relative to government revenue,” he said.
He added that the company was not immune to the severity of these pressures, as seen in the nearly 80 per cent increase in costs year-on-year.
Regarding operational results, Oyebode reported a total oil palm plantation area of 19,071 hectares for the year, with a mature area of 18,349 hectares.
“The remaining area consists of new and immature palm totaling 662 hectares.
“Total revenue from all palm products in 2024 was N107.5 billion, which was 60 per cent higher than the previous year, while the cost of sales increased by 73 per cent to N40.8 billion,” he said.
Dr Graham Hefer, Managing Director of the company, attributed the high cost of palm oil to the general cost of doing business.
Hefer explained that the company operated in an environment plagued by high inflation coupled with difficulties in accessing foreign exchange.
According to him, these challenges have had a negative impact on the company’s cost of sales.
He said, “The company has done very well in managing these costs, generating better revenue, and we are able to provide better dividends to our shareholders.”
