The Nigerian recession has been a blessing in disguise to Okomu Oil Palm PLC.
Despite tough challenges facing local manufacturers, the company is reporting 88.4% jump in its 2016 full year profit.
Total profit for the year was NGN4.9 billion compared to NGN2.6 billion in the previous year.
Headline revenue rose to NGN14 billion compared to NGN9 billion reported in the year 2015. As a sign of the high inflation in prices of raw materials, the company said the item rose to NGN3 billion compared to NGN1 billion in the previous year.
Gross profit for the year was NGN6 billion compared to NGN3 billion in the previous year. Okomu Oil said its cost of borrowing has more than also doubled what it paid for getting credit in the previous year.
Cost of funds rose to NGN1.3 billion compared to NGN429 million in the previous year.
Total assets rose by NGN4 billion to NGN24 billion. Its total liabilities actually fell to NGN7.4 billion compared to NGN7.9 billion in the previous year.
Gbenga Oyebode, the Chairman of Okomu Oil told shareholders in his remarks that the company produced a total of 168 million litres of palm oil which resulted in 36 thousand tonnes.
Okomu Oil Palm Company Plc is a Nigeria-based company engaged in cultivation of oil palm, processing of fresh fruit bunches into crude palm oil for resale, rubber plantation and processing of rubber lumps to rubber cake for export. The Company operates through two segments: Palm oil products and Rubber products.
The Company produces Banga cooking oil and natural rubber products. The Company’s plantation carries on the business of oil palm and rubber cultivation. The Company has ongoing plantation operations in Cote D’ivoire, Liberia, Guinea, Cameroon, Kenya and Indonesia.
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