Presco PLC reports N128 billion full-year pre-tax profit as revenue soars 93%  

Presco PLC has announced a full-year pre-tax profit of N128 billion in its latest financial report, released on the Nigerian Exchange (NGX) on January 31, 2025.

This marks a strong 156.05% increase in full-year pre-tax profit compared to the N50 billion reported for 2023, with the fourth quarter alone seeing an impressive N60.9 billion—up 233.46% from the N18.2 billion recorded the previous year.

Revenue for the fourth quarter was N69.5 billion, a substantial 172.34% increase from N25.5 billion in the corresponding quarter of 2023.

Total revenue for fiscal year 2024 reached N198.1 billion, a 93.48% increase from N102.4 billion in the previous year, with 90.2% of sales coming from Nigeria and the rest from Ghana.

Key highlights Revenue: N198.1 billion, +93.48% YoYCost of sales: N63 billion, +68.66% YoYGross profit: N135 billion, +107.74% YoYAdministrative expenses: N33 billion, +39.91% YoYSelling and distribution expenses: N2.8 billion, +81.12% YoYExchange gain: N6.1 billion, +40.39% YoYGain on biological assets revaluation: N24.8 billion, +102.86% YoYFinance cost: N12.7 billion, +38.89% YoYFinance income: N2.6 billion, +5,467.18% YoYPre-tax: N128 billion, +156.05% YoYCommentary A review of Presco’s full-year financial report reveals a notable revenue figure of N198.15 billion, marking a 93.48% increase from N102.4 billion in 2023.

Sales of crude and refined products accounted for 99.92% of total revenue at N198.14 billion, while mill by-products contributed only N15.7 million.Regionally, Nigeria represented 90.2% of total sales, generating N179.1 billion, with Ghana contributing N18.9 billion.However, the group faced a significant rise in cost of sales, which climbed 68.66% from N37.3 billion to N63 billion.

Mill processing, refinery, and packaging costs accounted for 47.8% of this total, while maintenance of mature plantings, harvesting, and laboratory expenses represented 26.3%.Employee costs made up 14.95%, with other costs comprising the remainder.Despite the increased costs, Presco’s gross profit rose by 107.74% to N135 billion, up from N65 billion the previous year.

Administrative expenses increased by 39.91% to N33 billion, driven mostly by staff costs, management fees, and transport.Selling and distribution expenses rose by 81.12% to N2.8 billion, primarily due to road transport of finished products, which accounted for N2.6 billion of this total.On a more positive note, Presco reported exchange gains of N6.1 billion for FY 2024, a 40.39% increase from the prior year. Additionally, the gain from biological asset revaluation increased by 102.86% to N24.8 billion compared to N12.2 billion reported in 2023.

Finance costs increased by 38.89% year-over-year to N12.7 billion, primarily due to N12 billion in loan interest. In contrast, finance income surged by 5,467.18% to N2.6 billion, a dramatic rise from N48.1 million the previous year.

Nevertheless, Presco’s full-year pre-tax profit increased by 156.05%, from N50 billion last year to N128 billion for FY 2024.

Asset position The company reported a total asset figure of N422 billion for the full year, compared to N170.3 billion in 2023.

Non-current assets amounted to N233.5 billion, up from N101.7 billion the previous year, with property, plant, and equipment making up 67.5% of this total, followed by intangible assets at 28.4%.Current assets also increased to N188.4 billion from N68.5 billion in 2023, primarily due to growth in biological assets and trade receivables.

Izuchukwu Okoye Okoye Izuchukwu is a financial market writer and trader with extensive expertise in both Nigerian and international markets. With a keen eye for market trends and a passion for insightful analysis, he translates complex financial concepts into engaging content. By combining practical trading experience with thorough research, Okoye offers valuable perspectives that empower readers to make informed decisions in the ever-evolving world of finance.