Okomu Oil Palm’s profit declines by 41% in Q3 due to high cost of sales

Okomu Oil Palm Plc has announced its unaudited financial statements for the third quarter that ended September 30th, 2022, reporting a profit after tax of N1.213 billion. This represents a 41.32% decrease compared to N2.067 billion reported in Q3 2021.  

The unaudited results show that turnover increased by 27% to N9.421 billion from N7.418 billion as of Q3 2021. 

The company’s revenue was driven by a significant rise in revenue from local sales of oil palm and rubber. Earnings per Share (EPS) dropped by 41.47% to 127 kobo from 217 Kobo as of Q3’2021. 

Meanwhile, the cost of sales rose by 289% to N4.723 billion from N1.214 billion in 2021. The increase was due to energy costs and raw materials import with its attendant foreign exchange burden.

The oil palm segment contributed 98.26% of the total cost of sales to N4.641 billion as against N878.767 billion in Q3 2021. 

Meanwhile, profit before tax decreased by 49.87% to N1.188 billion from N2.370 billion as of Q3 2021. Gross Profit also dropped by 24.27% to N4.698 billion in Q3 2022 from N6.204 billion in 2021.

Other key financial highlights

• Net Operating expenses dropped by 13.54% to N3.332 billion in 2022 from N3.854 billion the previous year 
• Total comprehensive Income decreased by 41.32% to N1.213 billion from N2.067 billion in 2021