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In this article, we will be taking a look at companies with the highest profit margin that investors will be interested in as they are able to convert Naira in sales into higher profit.
Despite a challenging environment characterised by rising inflation, higher interest rates, and spiraling overhead costs, several companies like Presco Nigeria Plc, Japaul Gold and Ventures Plc, Transcorp Group, and Okomu are an inspiration of profitability, which sets them apart from their competitors.
If these firms continue to boost profit margins, they will be delivering a higher profit to shareholders.
- Geregu Power Plc
2024 Half-Year Profit Margin: 24.81%
In addition to being one of the best performers on the stock exchange so far this year, Geregu Power boosted a net profit margin of 24.81 percent and solid return on equity that validates its earnings quality.
Profit for the period rose a spectacular 148 percent to N20 billion, when compared to H1, 2023, and it was also equivalent to 125 percent of 2023 Full Year after-tax profit.
- Okomu Oil Palm Plc
2024 Half-Year Profit Margin: 26.92%
Okomu Oil saw profit margin improve to 26.62 percent in the first six months of 2024 as it reported impressive revenue growth as sales spiked by 85.75 percent to N75 billion in the same period under review. It recorded improvement in export sales. The company is expanding its plantation with a view to increasing its share of the market.
- Transcorp Power Plc
2024 Half-Year Profit Margin: 27.15%
Transcorp Power recorded a profit margin of 27.15 percent as at June 2024, from 19.61 percent it printed last year. The utility firm saw its Half-Year profit surge by 233.03 percent to N36.77 billion.
- Transcorp Plc
2024 Half-Year Profit Margin: 30.09%
Arguably the most successful conglomerate in Africa, Transnational Corporation (Transcorp) Plc of Nigeria improved performance across sectors makes it the cream of the crop.
The conglomerate that magnifies shareholders earnings recorded a profit margin of 30.09 percent, from 19.61 percent the previous year.
The Conglomerate with strategic investments in the Power, Hospitality, and Energy sectors, recorded a profit after tax of N52.78 billion, rising by 227.79 percent up from N16.20 billion recorded in June of the previous year.
- Pesco Nigeria Plc
2024 Half-Year Profit Margin: 44.17%
The oil palm producer has translated top line impressive performance into profit than any other listed in the company as it recorded a profit margin of 44.17 percent.
Its profit spiked by 157.75 percent to N38.87 billion in June 2024 from N38.87 billion the previous year. Sales jumped up 83.10 percent to N88.02 billion as at June 2024 from N48.07 billion as at June 2023.
It is important to note that the company’s earnings growth was bolstered by sharp price increase as a result of foreign exchange scarcity which hindered competitors from bringing in the product into the country.
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