When the second quarter began, few could have predicted the scale of Okomu Oil’s turnaround.
But as inflation cooled and cost pressures eased, the palm oil giant seized the moment—quintupling its profit to nearly ₦26 billion.
According to its unaudited June results, the company grew net profit to ₦25.79 billion from ₦5.11 billion a year earlier.
Meanwhile, revenue more than doubled year-on-year, jumping 125.7% to ₦71.7 billion.
In addition, the firm slashed finance costs from ₦2.9 billion to ₦546.6 million, which helped expand its net profit margin to 36%.
Okomu Oil Profit Amidst Cost Pressures
Okomu Oil boosted pre-tax profit by 458.9% to ₦35.3 billion and nearly quadrupled gross profit to ₦44.3 billion.
For the first half of 2025, it more than doubled net income to ₦47.5 billion, while it lifted earnings per share by 135.4% to ₦49.83.
It also increased half-year revenue by 73.1% to ₦129.83 billion, thanks to higher product prices, export volumes, and FX gains from a weaker naira.
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Stable Macro Boosts Outlook
At the same time, the company benefited from easing inflation, which declined for the third straight month to 22.2% in June.
The relatively stable naira—projected to hit ₦1,400/$ by year-end—also helped lower input costs for FX-exposed businesses like Okomu.
Although the company recorded a 10% rise in net finance costs due to exchange losses, the impact of FX volatility remained significantly lower than last year.
Okomu Oil also strengthened its balance sheet, increasing total assets by 36.6% to ₦159.91 billion and raising retained earnings to ₦76.69 billion from ₦53.96 billion in December 2024.
By July 23, investors had driven the share price to ₦930, marking a 109.46% year-to-date gain and reflecting strong market confidence in Okomu’s performance.
