Okomu Oil Palm Plc has announced a pre-tax profit of N6.24 billion for the second quarter ending June 30, 2024, marking a 22.28% decrease compared to the same period last year and falling short of its forecasted pre-tax profit of N6.699 billion.
The company’s Q2 2024 financial statements reveal a revenue of N31.525 billion, representing a 25.7% decline from Q1 2024. However, the first half of 2024 shows substantial growth, with a total revenue of N75.008 billion, nearly equating to the entire revenue of 2023.
Financial highlights for Q2 2024 vs Q2 2023:
– Revenue: N31.525 billion (+92.33% YoY)
– Cost of Sales: N20.152 billion (+200.51% YoY)
– Gross Profit: N11.373 billion (+17.43% YoY)
– Net Operating Expenses: N5.708 billion (+12.01% YoY)
– Profit Before Tax: N5.665 billion (+23.45% YoY)
– Profit After Tax: N5.115 billion (-15.06% YoY)
– Earnings Per Share: N5.36 (-15.06% YoY)
Okomu Oil Palm Plc’s Q2 2024 performance reflects a decline in key metrics compared to Q1 2024, including revenue, profits, margins, and earnings per share. Despite these declines, the company maintains a healthy gross profit margin of 36%, suggesting robust market demand and effective cost management.
The fluctuations in foreign exchange, with an exchange gain of N3.502 billion and an exchange loss of N2.702 billion, have impacted the company’s financials. Such variations require management’s attention to mitigate effects on profits and investor sentiment.
Okomu Oil Palm Plc has consistently paid dividends over the past five years. Last year, the dividend per share was N18.50, offering a yield of 6.34%. For H1 2024, the company reported a post-tax profit of N20.196 billion, indicating potential for a strong interim dividend.
The share price, which had previously declined by 24.85% in Q1 2024, has since rebounded with a year-to-date gain of 12.31% as of July 26, 2024.
