Okomu Oil Reports 404% Profit Surge in Q2 2025 on Robust Sales, Higher CPO Prices

Okomu Oil Palm Plc (NGX: OKOMUOIL) has announced an impressive financial performance for the second quarter of 2025, with unaudited results showing a 404.4% year-on-year surge in earnings per share (EPS) to N27.05, up from N5.36 in the corresponding period of 2024.

The result, released on 24 July, brings the company’s half-year EPS to N49.83, a notable increase from N21.17 posted in H1 2024.

The stellar performance was underpinned by a significant rise in revenue, which jumped by 127.5% year-on-year to N…, driven by strong sales across both domestic and export markets.

Local sales, accounting for 92.3% of total revenue, grew by 136.7%, while export sales rose by 55.4%.

This robust topline performance benefited from higher Crude Palm Oil (CPO) prices, with average CIF Rotterdam prices reaching $940.21 per metric tonne during the quarter, compared to $841.30 in the same period last year, amid persistent global supply constraints.

On a quarter-on-quarter basis, revenue also climbed by 23.4%.

Improved operational efficiency and easing inflationary pressures contributed to a significant expansion in gross margin, which rose by 25.71 percentage points to 61.8%.

The cost of sales increased by a relatively modest 36.0% year-on-year, a sharp deceleration compared to the 172.3% rise recorded in Q2 2024.

Operating profitability also strengthened, with EBITDA and EBIT margins rising to 51.2% and 49.3% respectively, despite a 56.7% increase in operating expenses, which was likely driven by the company’s scaling of operations to support growing production.

Okomu Oil reported a net finance cost of N515.52 million during the quarter, compared to a net finance income of N570.65 million in Q2 2024.

The swing was mainly due to a steep decline in exchange losses, which fell by 89.0% to N297.17 million from N2.70 billion a year earlier. Interest on long-term loans remained broadly stable, rising slightly by 0.3% to N203.62 million, although bank charges rose by 67.9% to N45.90 million.

As a result, profit before tax surged by 458.9% to N34.85 billion, compared to N6.24 billion in Q2 2024. After a tax charge of N9.05 billion, the company’s profit after tax stood at N25.80 billion, a significant increase from the N5.11 billion recorded a year earlier.

Market analysts have described the results as a strong showing, largely driven by favourable pricing conditions and cost discipline. Looking ahead, the company is expected to maintain resilient performance supported by firm local pricing, operational efficiency, and a more stable naira environment.

However, analysts also warned that a potential decline in global CPO prices in the second half of the year, due to improved supply from Southeast Asia and subdued demand, could pose a downside risk to revenue growth. Estimates for the full year are currently under review.