Abuja: Okomu Oil Palm Company Plc has announced a record net profit of N39.9 billion for the year 2024, a significant increase from N20.6 billion in 2023. Mr. Gbenga Oyebode, Chairman of the Board of Directors, revealed this information during the company’s 45th Annual General Meeting in Abuja.
According to News Agency of Nigeria, Oyebode presented the company’s annual report, highlighting the challenges faced in 2024, which included an 80 per cent rise in costs. Despite these obstacles, the company achieved a 94 per cent increase in net profit. This growth was largely driven by a sustained rise in product prices, with Crude Palm Oil (CPO) prices increasing by approximately 35 per cent year-on-year and rubber prices rising by 194 per cent.
The company also reported increased revenue and profitability, along with the expansion of its plantation. Okomu Oil Palm continues to plant and process oil palm and rubber, exporting the rubber produced. The company remains a key investor in Edo State, contributing to local communities and shareholders.
Oyebode discussed the operational and economic environment in 2024, noting that geographical tensions and economic pressures were prevalent. In Nigeria, macroeconomic policies and market reforms led to a depreciation of the Naira, rising petrol prices, and high inflation, with rates peaking at 34.8 per cent by year-end. These factors increased living costs, fuel shortages, food prices, and energy and transport costs. Additionally, the country’s debt service costs remained high compared to government revenue.
Despite these pressures, Okomu Oil Palm was affected by nearly an 80 per cent increase in costs. The company reported a total oil palm plantation area of 19,071 hectares, with a mature area of 18,349 hectares and a remaining area of 662 hectares consisting of new and immature palms. Total revenue from palm products in 2024 reached N107.5 billion, a 60 per cent increase from the previous year, while the cost of sales rose by 73 per cent to N40.8 billion.
Dr. Graham Hefer, Managing Director of the company, attributed the high cost of palm oil to elevated business expenses and challenges in accessing foreign exchange. These issues negatively impacted the company’s cost of sales. Hefer stated that the company managed these costs effectively, generating better revenue and providing improved dividends to shareholders.