Presco PLC Reports N128bn Full-Year Pre-Tax Profit

Presco PLC has announced a full-year pre-tax profit of N128 billion in its latest financial report, released on the Nigerian Exchange (NGX) on January 31, 2025.

This marks a 156.05 percent increase compared to the N50 billion reported in 2023, with the fourth quarter (Q4) alone recording an impressive N60.9 billion—up 233.46 percent from the N18.2 billion posted the previous year.

Revenue for the Q4 surged to N69.5 billion, reflecting a 172.34 percent rise from N25.5 billion in the corresponding quarter of 2023. For the full fiscal year 2024, total revenue reached N198.1 billion, a 93.48 percent jump from N102.4 billion in the previous year. Sales from Nigeria accounted for 90.2 percent of this revenue, while Ghana contributed the remaining portion.

A closer review of Presco’s financials shows that sales of crude and refined products made up 99.92 percent of total revenue, amounting to N198.14 billion, while mill by-products contributed N15.7 million. Nigeria remained the dominant market, generating N179.1 billion in sales, with Ghana contributing N18.9 billion.

Despite the strong revenue growth, the cost of sales also rose significantly by 68.66 percent, climbing from N37.3 billion to N63 billion. Mill processing, refinery, and packaging costs made up 47.8 percent of this figure, while maintenance of mature plantings, harvesting, and laboratory expenses accounted for 26.3 percent. Employee costs represented 14.95 percent, with other expenses making up the remainder.

Gross profit increased by 107.74 percent to N135 billion, up from N65 billion in the previous year. Administrative expenses rose by 39.91 percent to N33 billion, mainly due to staff costs, management fees, and transportation. Selling and distribution expenses also saw an increase of 81.12 percent, reaching N2.8 billion, with road transport of finished products accounting for N2.6 billion of this total.

Presco reported exchange gains of N6.1 billion, reflecting a 40.39 percent increase from the previous year. Additionally, the company’s gain from biological asset revaluation doubled to N24.8 billion, up from N12.2 billion in 2023. Finance costs grew by 38.89 percent to N12.7 billion, driven primarily by N12 billion in loan interest. However, finance income saw a staggering rise of 5,467.18 percent, reaching N2.6 billion compared to just N48.1 million in the prior year.

Despite these increased expenses, Presco’s pre-tax profit soared by 156.05 percent from N50 billion in 2023 to N128 billion for the 2024 fiscal year.

In terms of assets, Presco reported a total asset base of N422 billion, a substantial increase from N170.3 billion in 2023. Non-current assets rose to N233.5 billion from N101.7 billion, with property, plant, and equipment making up 67.5 percent of this total, followed by intangible assets at 28.4 percent. Current assets also saw significant growth, increasing to N188.4 billion from N68.5 billion, primarily due to higher biological assets and trade receivables.

With this performance, Presco PLC has solidified its financial strength and market position, setting the stage for continued growth and expansion in the coming year.