Presco reports 57% jump in pre-tax profits in 2025 unaudited accounts

Presco Plc reported a profit before tax of ₦178.56 billion for the full year ended December 31, 2025, marking a significant increase of 57.28% compared to ₦113.53 billion in the prior year.

For the fourth quarter alone, pre-tax profit stood at ₦39.04 billion, down 35.96% from ₦60.97 billion in Q4 2024 and down 19.63% from ₦48.55 billion in Q3 2025.

Notably, this full-year profit represents the highest in the company’s history.

 

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Key Highlights (Interim Results)

• Revenue: ₦331.19 billion (Up 59.65% YoY from ₦207.50 billion)

• Gross Profit: ₦228.21 billion (Up 63.12% YoY from ₦139.94 billion)

• Operating Profit: ₦214.39 billion (Up 69.95% YoY from ₦126.11 billion)

• Profit Before Tax: ₦178.56 billion (Up 57.28% YoY from ₦113.53 billion)

• Earnings Per Share: ₦134.38 (Up from ₦74.01)

• Total Assets: ₦833.40 billion (Up 75.39% from ₦475.10 billion)

• Cash and Bank Balance: ₦279.69 billion (Up from ₦31.40 billion)

• Total External Debt (Short & Long Term): ₦164.10 billion (Up from ₦55.45 billion)

Management Commentary: The company executed a successful rights issue raising ₦237.7 billion in premium and finalized the acquisition of the remaining 48% stake in Ghana Oil Palm Development Company (GOPDC), bringing its ownership to 100%

Driving the Numbers

Presco’s revenue was largely driven by increased sales of crude and refined palm oil products, which made up the bulk of the ₦331.19 billion in revenue.

• Sales to Ghana surged over 160% to ₦80.01 billion, reflecting the consolidation of GOPDC as a wholly owned subsidiary in 2025. Cost of sales rose by 52.42% YoY to ₦102.98 billion, but was outpaced by the growth in revenue.
• The valuation gain on biological assets contributed ₦32.90 billion, up from ₦29.00 billion the prior year, reflecting improved agricultural productivity.
• Administrative and distribution expenses grew substantially due to expanded operations and inflationary pressures, while finance costs jumped to ₦43.62 billion from ₦12.79 billion, driven by a higher debt burden. However, this was mitigated by increased finance income of ₦7.79 billion.
• On the balance sheet, the company’s cash position surged to ₦279.69 billion due to net cash inflows from financing activities — particularly the rights issue and new borrowings.
• Borrowings more than doubled to ₦164.10 billion, partially funding the acquisition of GOPDC and capital investments.
• Total assets rose significantly as a result of this acquisition and the increase in biological assets.
• Operating cash flow remained robust at ₦146.17 billion, supporting the company’s expansion and dividend payout.

Market Reaction

Presco shares closed flat from the prior trading day at ₦1,635 per share.

• Presco’s share price closed at ₦1,450 at the end of 2025, rising sharply from ₦475 at the end of 2024 — representing a year-to-date return of over 205%.
• The company also declared a dividend of ₦72 billion during the year, maintaining shareholder rewards even amidst aggressive expansion.