Presco Plc, Nigeria’s leading integrated oil palm producer, delivered a record-breaking performance for the 2025 fiscal year, as a bold pivot into European markets and the full consolidation of its Ghanaian subsidiary triggered a 59% revenue surge.
The company’s net income climbed 76.8% to ₦138 billion, underscoring its successful evolution from a local producer into a regional agricultural giant.
The results highlight a strategic shift toward hard-currency earnings, with the group successfully opening new export corridors in Germany and Austria to hedge against domestic currency volatility.
Export Engine: Ghana and Europe Drive Growth
While Nigeria remains the core market, Presco’s geographical diversification was the primary catalyst for the 2025 top-line explosion:
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The Ghana Factor: Following the acquisition of the remaining 48% equity in Ghana Oil Palm Development Company (GOPDC), revenue from Ghana skyrocketed 163% to ₦80 billion. The unit is now 100% owned by Presco, valued at ₦195.08 billion.
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European Footprint: Presco successfully penetrated the EU market, booking ₦5.3 billion in sales from Germany and ₦537 million from Austria—both rising from zero in 2024.
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Domestic Resilience: Nigerian revenue grew a steady 38.5% to ₦245.3 billion, supported by high local demand for refined palm products.
The Finance Cost Blight: Debt Stock Triples
The expansion has come at a significant cost to the company’s balance sheet structure:
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Interest Spike: Finance costs surged 240% to ₦43.56 billion, reflecting the high-interest-rate environment and a massive increase in leverage.
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Borrowing Surge: Total borrowings jumped 196% to ₦164.1 billion, up from ₦55.44 billion a year ago. This was driven by the funding requirements for the GOPDC acquisition and capacity expansion.
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Cash Position: Despite the debt, the group’s cash position exploded by 882% to ₦279.68 billion, juiced by ₦109.9 billion in new loans and a ₦234.8 billion movement in share capital.
Operational Efficiency: Production Costs Rise 31%
Like most Nigerian manufacturers, Presco faced severe inflationary pressure on its production line:
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Cost of Sales: Total cost of sales rose 52% to ₦102.98 billion, trailing slightly behind revenue growth and allowing for margin expansion.
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The Production Mix: Core production costs hit ₦76.04 billion, while raw material consumption accounted for ₦15.2 billion. Maintenance and repair costs stood at ₦2.7 billion, reflecting the heavy capital intensity of its refining and fractionation plants.
Presco is a fully integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining plant. Presently, the only one of such in Nigeria.
The company operates from eight estates (6 in Nigeria and two in Ghana): Obaretin Estate, Ologbo Estate and ATO Estate in Edo State, Cowan Estate in Delta State, Ubima & Elele in Rivers State, Kwae and Okumaning estates in Ghana.
Presco Plc’s shares are actively traded on The Nigerian Stock Exchange with the Siat Group holding 61.2% while the Nigeria Public holds 38.8%.
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