Okomu Oil H1 2026 pre-tax profit falls 12% to N59 billion

Okomu Oil Palm Plc reported a pre-tax profit of N58.99 billion for the six months ended June 30, 2026, down 12.03% from N67.05 billion in the corresponding period of 2025.

For the second quarter, pre-tax profit stood at N24.89 billion, down 27.00% from the derived first-quarter profit of N34.10 billion and down 28.58% from N34.85 billion in Q2 2025.

Profit after tax also declined by 16.42% to N39.73 billion in H1, according to the company’s unaudited financial statements for the six months ended June 30, 2026, which were filed with the Nigerian Exchange (NGX) on Tuesday, July 28.

Key Highlights (H1 2026 vs. H1 2025)

Revenue: N125.29 billion (Down 3.50% YoY from N129.83 billion)
Gross profit: N80.73 billion (Down 7.13% YoY from N86.93 billion)
Operating profit: N59.94 billion (Down 12.37% YoY from N68.40 billion)
Earnings per share: N41.65 (Down 16.42% YoY from N49.83)
Total assets: N166.71 billion as of June 2026 (Up 20.06% from N138.85 billion in December 2025)
Cash balance: N21.40 billion as of June 2026 (Up 65.34% from N12.95 billion in December 2025).

Driving the numbers

Okomu Oil’s half-year revenue declined by 3.50% to N125.29 billion, driven by weaker local and export sales, which impacted profitability

Local sales, which accounted for about 90.37% of total revenue, fell by 3.19% to N113.22 billion.
Export sales declined by 6.38% to N12.06 billion and contributed about 9.63% of total revenue.
The quarterly numbers showed a more pronounced slowdown. Q2 revenue fell by 7.52% to N66.33 billion from N71.72 billion in Q2 2025.
Local sales declined by 11.73% to N58.43 billion, although export sales rose by 42.98% to N7.90 billion.
Cost pressures further weakened profitability. Half-year cost of sales increased by 3.84% to N44.56 billion despite the decline in revenue.
Oil palm costs rose by 1.66% to N37.61 billion, while rubber costs increased by 17.51% to N6.95 billion.

Consequently, gross profit fell by 7.13%, while the gross margin declined to about 64.44% from 66.95% in the prior-year period.

Net operating expenses increased by 12.23% to N20.79 billion, contributing to the 12.37% decline in operating profit.
Finance costs also rose by 8.85% to N1.57 billion, driven mainly by an exchange loss of N1.18 billion. This was partly offset by finance income of N622.47 million, compared with N97.87 million in the first half of 2025, following higher interest income from fixed deposits and other balances.

The weaker operating performance and higher finance costs reduced pre-tax profit to N58.99 billion. After taxation of N19.26 billion, profit after tax declined by 16.42% to N39.73 billion.

Balance sheet

On the balance sheet, inventories nearly doubled to N36.61 billion from N18.32 billion at the end of 2025. Trade receivables also increased to N7.19 billion, while cash rose to N21.40 billion.

The company moved to a positive net current asset position of N19.09 billion from a net current liability position of N2.49 billion in December 2025.

Long-term loans declined to N3.91 billion, although lease liabilities remained at N18.28 billion.