Nigeria’s biggest palm oil producers, Presco Plc and Okomu Oil Plc, had their best run in 2025, helped by higher Crude Palm Oil (CPO) prices, which rose to $1,007/metric tonnes (MT) from $923/MT; stronger domestic sales; and sustained volumes.
The combined net profit of Presco and Okomu Plc nearly doubled to N201.64 billion as revenue jumped 125 percent to N538.69 billion, signalling strong sales growth amid the global CPO rally.
Despite the strong performance, Presco witnessed a steep rise in finance cost, up 240.99 percent, driven by higher interest expenses on loans and overdrafts as total debt grew by 180.49 percent to support expansion plans, including the acquisition of the Ghana Oil Palm Development Company (GOPDC). On the other hand, finance income surged by 3,467.21 percent to N7.8 billion, driven largely by higher interest.
For Okomu, finance income fell by 20.37 percent to N11.07 billion, specifically due to a 20.38 percent drop in foreign exchange gains following a more stable naira in 2025. Finance costs, however, grew by 31.80 percent to N13.78 billion. This is driven by a 43.54 percent growth in exchange losses tied to the revaluation of foreign-currency-linked liabilities.
Analysts at Meristem see both Okomu and Presco maintaining their bullish run in 2026 despite moderating global CPO prices.
“We remain positive on Okomu Oil to maintain solid performance in 2026 supported by higher harvest volumes, improved operational efficiency, and steady demand for palm oil products,” the analysts said.
“Looking ahead, PRESCO is expected to sustain its strong performance, supported by higher production volumes and ongoing contributions from the GOPDC acquisition.
“While global CPO prices are moderating, the combination of scale, operational efficiency, and strategic asset growth should help offset price pressures and maintain healthy margins in the near term.”
Read also: The economics of adulterated palm oil in Nigeria
Presco, Okomu: Which is more profitable?
Presco Plc., Nigeria’s largest listed palm oil producer, posted a record full-year profit in 2025, shrugging off a softer fourth quarter as surging sales volumes, higher palm oil prices, and a balance-sheet transformation powered earnings to new highs.
Profit attributable to shareholders jumped to N138.1 billion, almost doubling from N76.1 billion a year earlier, according to the company’s unaudited results for the year ended December 31 filed with the Nigerian Exchange. Revenue climbed 60 percent to N331.2 billion, driven largely by stronger sales of crude and refined palm oil across Nigeria and Ghana.
For Okomu, profit after tax rose to N63.53 billion in 2025, compared to N39.95 billion in the same period two years ago. This is as gross profit jumped 71 percent to N139.55 billion, reflecting improved margins amid higher palm oil prices.
While Presco generated more revenue, Okomu outperformed on profitability, posting a near 49 percent margin compared with Presco’s 42 percent, reflecting sharper operational efficiency.
Presco, Okomu: Which is more efficient?
Okomu Oil’s 2025 numbers point to a business squeezing more value from both capital and assets, even as its larger rival shows signs of easing efficiency.
Return on equity at Okomu jumped 113.34 percent from 71.19 percent in 2024, signalling a sharp improvement in how effectively management converted shareholders’ funds into profit, while return on assets rose 46.71 percent, highlighting stronger productivity across its plantations and processing assets.
The gains suggest tighter cost control, better yields, and favourable pricing, translating cleanly into earnings.
By contrast, Presco’s ROE slipped to 43.41 percent from 54.57 percent, and ROA fell to 21.11 percent, indicating that while profits remained high in absolute terms, the company generated less return per naira of equity and assets deployed.
The decline can be attributed to a significant increase in equity, which rose 219.74 percent, following capital raised in the fourth quarter and a 75.42 percent expansion in total assets. This reflects the company’s strategic investment in growth, which has temporarily tempered efficiency ratios while positioning the palm oil maker for longer-term results.
The divergence in efficiency ratios, however, highlights a familiar trade-off in Nigeria’s palm oil sector: Presco’s scale delivers revenue leadership, but Okomu’s leaner operations are currently producing superior capital efficiency.
Read also: Soaring palm oil prices lift Presco, Okomu’s profit to a record
On cash flow margin
Free cash flow margins underline the quality of earnings at both palm oil producers, with Okomu again standing out on efficiency.
Using net cash flow as a proxy, Okomu generated N81.18 billion in cash on N130.81 billion of revenue in 2025, translating to a free cash flow margin of about 62 percent, up sharply from the prior year as cash flow rose from N48.22 billion.
The ratio suggests that a large share of Okomu’s sales is being converted directly into cash, giving the company ample room to fund expansion, absorb shocks, or reward shareholders without leaning on debt.
Presco, by contrast, posted a net cash flow of N146.17 billion on N331.19 billion in revenue, implying a free cash flow margin of roughly 44 percent, also an improvement from 2024 when cash flow stood at N89.68 billion.
While Presco generates more cash in absolute terms, Okomu’s higher margin points to stronger cash discipline and superior cash conversion relative to sales.
On equities market
Equities performance shows both palm oil producers remain investor favourites, though momentum has moderated after last year’s outsized rally.
Okomu, with a market capitalisation of N1.15 trillion, has gained 10.2 percent year to date, building on a 147 percent surge in 2025 that pushed its share price to N1,206.50.
The slower pace reflects profit-taking after a blockbuster year, even as strong margins, cash generation and improving returns continue to underpin investor confidence.
Presco, the larger of the two with a N1.97 trillion valuation, has outperformed so far in 2026, rising 16.6 percent since the start of the year, after delivering a heftier 189 percent gain last year. Its shares trade at N1,690, supported by scale, rising cash flows, and sustained earnings growth.
The comparison suggests that while Presco is currently attracting stronger near-term momentum, Okomu’s superior efficiency metrics leave it well positioned to defend its valuation if earnings discipline holds.
