Okomu Oil Palm Company Plc Q1’20 results – Earnings surge on strong domestic sales

Must Read

FG to shut Third Mainland Bridge on July 24 for 6 months

The Federal Government is set to shut the Third Mainland Bridge for six months starting from Friday, July 24. This...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

Here is the list of Providus Bank Branches in Lagos

A little over two years after it was granted a commercial banking license with regional authorization by the Central...
Okomu Oil Palm Company Plc (OKOMUOIL) has announced a 101.4% YoY surge in earnings to N2.0 billion in its Q1’20 unaudited results. The numbers suggest a significant improvement in margins and robust cash flow generation that may be closely linked to ongoing border closures. 
 
Some positives:
  • OKOMUOIL reported a 65.5% YoY jump in turnover to N6.9 billion in the quarter, following an 81.6% YoY increase in local sales which masked the weakness in export revenue (-12.5% YoY). Growth in Q1’20 revenue likely reflects greater harvesting from matured areas of previous years’ planting. This may have been largely supported by a greater share of domestic demand occasioned by the ongoing border closures. We believe the bulk of OKOMUOIL’s export revenue is derived from rubber, which is completely shipped out of the country by the company
  • Cost of sales declined by c.70.0% YoY to N252.0 million. The cost improvement cuts across both oil palm and rubber segments. We, however, believe there could be some reclassification between the cost of sales and other operating expense in coming quarters
  • Cash generated from operations surged to N3.6 billion in Q1’20 from N7.2 million in Q1’19, aided by a significant surge in cash receipt from customers (+129.3% YoY)
Some concerns
  • OKOMUOIL’s operating cost rose by c.71.0% YoY to N3.5 billion, but we believe this may also be subject to reclassification in coming quarters
  • The effective tax rate was also 12.1ppts higher YoY at 33.0% in the quarter but in line with regulation
  • Finance cost rose by 153.6% YoY likely due to the new long term borrowing obtained last year for business expansion
Read Also:  MPC Maintains Accommodative Stance…Cuts MPR to 12.50%

Okomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic sales

- Advertisement -
Okomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic salesOkomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic sales

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  Okomu Oil plans to Cultivate 5,000 Hectares Oil Palm in Edo State

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Okomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic salesOkomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic sales

Latest News

Konnect Africa offers Broadband Internet Connection to all Isolation Centers in Sokoto State, Nigeria to fight against Covid-19

Konnect, a subsidiary of Eutelsat Communications, pursues its ambition to connect the entire African continent to very high-speed Internet,...

Gerety Awards: Final Deadline Fast Approaches, Need for Equality as Strong as Ever

The final deadline for the Gerety Awards is on July 17, with winners announced later in the year, a benchmark for creativity's future in...

Kincentric appoints Singapore market lead to drive HR advisory focused on public sector and large local organizations in Singapore and Indonesia

Andrew How brings 20 years of experience helping businesses through Culture & Engagement, Leadership Assessment, and HR & Talent Advisory, spearheading growth, driving transformation...

GSB Gold Standard Banking, Josip Heit and SPREE FLUG in Times of Coronavirus

HAMBURG, GERMANY - NEWSAKTUELL - 6 July 2020 - In the coronavirus pandemic, job cuts, such as those currently at the aircraft manufacturer Airbus, are hitting...

Adyen Expands Acquiring Capabilities to Malaysia

Adyen launches its acquiring solution in Malaysia to help local businesses achieve higher authorization rates, better customer experience, and deeper data insights as the...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Okomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic salesOkomu Oil Palm Company Plc Q1'20 results - Earnings surge on strong domestic sales