Presco Plc, an integrated edible oil producer, has reported an 8.5% increase in profit before tax to N151.5bn for the first nine months of 2026. This growth was achieved despite inflationary pressures, declining edible oil prices, and challenging global market conditions. The company's unaudited financial results for the nine months ended September 30, 2026, revealed this significant milestone.
The company's standalone profit before tax rose by 12.7% to N96.9bn, while profit after tax increased by 11.9% to N68.7bn. This reflects improved performance in its core operations. Additionally, Presco reported a decline in its standalone cost of sales by 6.2% to N46.2bn. The group gross profit stood at N202.8bn, with gross profit margins exceeding 73%.
Presco's financial position also improved during the period, following a reduction in total group borrowings by approximately 57% to N137.1bn. This represents a decrease of N180.2bn. Similarly, total group liabilities declined by 42.4% to N278.2bn. The company's finance costs fell by 34.5% from N30bn to N19.6bn.
The company's shareholders' equity increased by 10.1% to N487.3bn, with retained earnings rising to N253.5bn. Presco also maintained a cash position of N135.2bn. Revenue from its Nigerian operations grew by 12.7% to N222bn. This highlights the contribution of the domestic market to the group's performance.
According to the Managing Director and Chief Executive Officer of Presco Plc, Reji George, the company maintained strong operational performance across its plantations, processing facilities, and supply chain. He attributed the performance to disciplined cost management, improved productivity, operational diversification, and strategic investments.
Reji George also noted that the commencement of production at the Saro Oil Palm plantation would further strengthen the company's production capacity and earnings. The company's priorities as the year draws to a close include improving operational efficiency, expanding productive capacity, and strengthening its sustainability commitments.
The managing director expressed confidence in the company's ability to close the year strongly, citing its integrated business model and management approach as factors supporting its long-term growth prospects. The commencement of fresh fruit bunches production from its recently acquired Saro Oil Palm Limited plantation in the fourth quarter of the year is expected to support future growth in production capacity and profitability.
Key points
- Presco Plc reports 8.5% increase in nine-month profit before tax to N151.5bn.
- The company's profit growth was driven by improved core operations and cost management.
- Presco's financial position improved, with reduced borrowings and liabilities.
