Tuesday, January 22, 2019 2:18:27 PM- Nigerian Stock Exchange.

  Disappointing results by OkomuOil Plc - 11% loss in PBT


26 July 2018 ( Lagos ) : Okomu Oil Palm Company Plc released its H1’2018 results yesterday, for the half year ending June 30, 2018, showing a profit after tax (PAT) of N 5.9 billion.

According to the scorecard, ( OKOMUOIL ) posted a turnover of N 12.9 billion in 2018, which is a marginal increase of 3.7% from from N 12.5 billion in the corresponding period of 2017. The increase in their turnover is mainly from the export sales which saw an increase of 12.8%, as compared to their local sales, which only increased by 2.67%.

An analysis of the results indicated that cost of sales increased by a whooping 40% from N 1.3 billion in 2017 to N 1.8 billion in 2018. While the CoS for Oil palm increased by 38.3%; their rubber cost of sales skyrocketed by 52%. Due to the marginal increase in revenue and surge in Cost of sales, the Gross profit decreased by 0.4% and stood at N 11.14 billion, compared with N 11.18 billion in 2017. Their operating expense also increased by 28.14%, which obviously did not help matters. 

Their finance cost dramatically reduced by 30 %, mainly due to saving in exchange losses and Interest on long term loans. Simultaneously their finance income also marginally increased by 5. 8 %, due to exchange gains.. Consequently, their profit before tax declined by 11% from N 7.8 bn to N 6.9 billion, while PAT dipped by 4% to N 5.9 billion in 2018, from N 6.2 billion in 2017. The decrease in decline from PBT to PAT is due to decrease in their taxation by 36.4%.

Reporting for EasyKobo on Thursday, 26 July 2018 in Lagos, Nigeria

Readers's Opinion(0)

If you would like to post comments! Please log in.

Community sentiment

Top Stocks creating buzz on easykobo
Finance message boards

Related Articles