Presco’s pre-tax profit hits N122.2 billion in H1 2026

Presco Plc has released its unaudited financial statement for H1 2026 , reporting a profit before tax of N122.2 billion for the six months ended 30 June 2026.

This represents an increase of 9.3% from N111.9 billion recorded in the corresponding period of 2025.

The result, filed on the Nigerian Exchange (NGX) on Wednesday, July 29, 2026, was supported by a significant reduction in finance costs and improved finance income despite a relatively flat revenue performance.

During the second quarter, profit before tax stood at N52.98 billion, marginally lower than the N69.24 billion implied in the first quarter of 2026 but broadly unchanged compared to N53.25 billion recorded in the second quarter of 2025.

The company also proposed an interim dividend of N10 per share following the release of its half-year results.

Key Highlights

Revenue: N198.75 billion (Flat YoY from N198.74 billion)
Gross Profit: N165.82 billion (Down 1.0% YoY from N167.51 billion)
Operating Profit: N126.48 billion (Down 2.6% YoY from N129.80 billion)
Profit Before Tax: N122.22 billion (Up 9.3% YoY from N111.85 billion)
Profit After Tax: N82.27 billion (Down 7.3% YoY from N88.72 billion)
Earnings Per Share: N70.52 (Down 20.5% YoY from N88.72)

Driving the numbers

Revenue remained largely unchanged at N198.75 billion during the period, reflecting a stable operating environment.

The revenue mix shifted geographically, with Nigerian operations contributing N164.63 billion compared with N146.45 billion a year earlier, while Ghanaian revenue declined to N34.12 billion from N52.28 billion.
Sales of crude and refined products remained the dominant revenue source, accounting for over 97% of total turnover.
Despite flat revenue, profitability benefited significantly from lower financing costs. Finance costs declined to N13.27 billion from N19.50 billion in the prior year, while finance income rose sharply to N9.02 billion from N1.55 billion due largely to higher income earned on fixed deposits.
As a result, net finance costs fell substantially, supporting the growth in pre-tax profit.

Cost pressures remained evident in several operating expense lines. Administrative expenses increased by 13.3% to N39.50 billion, driven by higher staff costs, transport expenses, insurance costs, and subscriptions.

Selling and distribution expenses also increased by 74.8% to N3.34 billion, reflecting higher logistics and selling costs. These increases contributed to the decline in operating profit despite stable revenue.
The balance sheet strengthened materially during the period. Total borrowings declined to N119.52 billion from N317.30 billion following significant loan repayments. Total liabilities fell to N277.80 billion from N483.26 billion, while retained earnings increased to N258.36 billion from N176.08 billion.
The stronger balance sheet was achieved at the expense of liquidity, with cash balances declining to N129.86 billion from N262.58 billion as the company used cash resources to repay debt.

Cash flow analysis supports this trend. Operating activities generated N68.08 billion during the period, while financing activities consumed N213.44 billion, mainly due to loan repayments of N197.25 billion and interest payments. Consequently, cash and cash equivalents declined by N139.35 billion during the first half of the year.

Balance Sheet

Total External Debt: N119.52 billion (Down 62.3% from N317.30 billion at December 2025)
Total Assets: N781.41 billion (Down 15.6% from N926.01 billion at December 2025)
Cash Balance: N129.86 billion (Down 50.5% from N262.58 billion at December 2025)
Total Equity: N503.62 billion (Up 13.8% from N442.75 billion at December 2025)

Management commentary

Management stated that the company’s H1 2026 performance reflected the strength of its operating model despite a challenging environment and softer crude palm oil prices.

“Our H1 2026 performance underscores the strength of our operational model in a challenging environment. The 9.3% growth in profit before tax, driven largely by a 31.9% reduction in financing costs, reflects our deliberate focus on cost optimization and balance sheet discipline,” Reji George, Managing Director/Chief Executive Officer, stated.
“With equity up13.8% and liabilities down 42.5%, we have further fortified our financial foundation. The proposed interim dividend of N10 per share signals our confidence in the business’s trajectory and our commitment to rewarding shareholders.”

Market reaction

The share price has recorded steady growth since the start of the year 2026.

Presco’s share price closed at N2,039.44 as of 28 July 2026, compared with N1,709.95 at the end of 2025.

This represents a year-to-date return of approximately 19.27%.

The Board has also proposed an interim dividend of N10.00 per ordinary share of 50 kobo, subject to applicable withholding tax and shareholder approval. Shareholders on the register as of 14 August 2026 will qualify for the payment.

What you should know

Presco Plc’s strong H1 performance was underpinned by an aggressive expansion strategy carried out in 2025, aimed at scaling production and consolidating market leadership.

The company deepened its footprint with the acquisition of over 10,000 hectares of oil palm estates in Nsádop and Boki, significantly expanding its plantation base and strengthening its ability to meet rising domestic demand for edible oils.

It also launched a N236.67 billion rights issue targeted at funding acquisitions and capital projects, highlighting a deliberate push to accelerate growth, expand processing capacity, and strengthen its integrated value chain.