Okomu Oil Palm Company PLC (OKOMU) Q3-2020 financials show a 19.8% growth in revenue majorly driven by a 27.42% increase in local sales. However, export sales declined by 20.44% in the midst of continuous closure of the land border.
Okomu Oil Palm generated N18.62bn revenue compared to the N15.54bn generated in Q3-2019 with domestic sales increasing from N 3.07bn to N16.65bn while export sales declined from N2.48bn to N1.97bn in the current period. There was also an improvement in cost management as cost margin declined from 14.3% to 11.6% on the back of 2.60% reduction in the cost of sales.
Cost Efficiency and Improved Income Boost Bottom-Line Performance
Following the reduction in the cost of sales and improved turnover, Okomu Oil Palm’s gross profit advanced by 23.5% from N13.33bn to N16.46bn while operating profit increased by 22.3%. Okomu generated N7.26bn operating income compared to the N5.93bn realized in Q3-2019.
Consequently, profit before tax advanced by 11.8% from N6.10bn in Q3-2019 to N6.82bn in Q3-2020. In summary, profit after tax increased by 21.5% from N4.11bn to N4.99bn driving the EPS to N5.24 from the N4.31 recorded in the earlier period.
