Okomu Oil Delivers Solid Earnings for first 9months of 2025
Earnings Snapshot
Okomu Oil Palm Plc (“Okomu” or “the Company”) released its financial results for the nine months ended September 2025 (“9M 2025”), showing strong year-on-year growth despite a slower performance in the third quarter (“Q3 2025”).
For the 9M 2025 period, revenue rose by 67.34% year-on-year (y/y), while net profit increased by 112.90% y/y. Profit margins also improved, with the EBITDA margin expanding by 884 basis points (bps) compared to the same period in 2024. However, Q3 2025 standalone results revealed a softer performance, highlighted by a 42.73% quarter-on-quarter (q/q) decline in domestic sales and a 477bps drop in the EBITDA margin.
Dividend & Outlook
The Company announced an interim dividend of N10 per share for the nine-month period, bringing the total interim payout for the year to N40 per share. This decision reflects Okomu’s strengthened financial position, with shareholders’ equity rising by N16.17 billion y/y to N62.39 billion in 9M 2025.
While overall results remain solid, the weaker quarterly performance in Q3 2025 will be closely monitored in the final quarter of the year. The stock remains rated HOLD, supported by strong fundamentals and long-term growth potential.
9M 2025 Performance (Year-on-Year)
Revenue climbed to N173.95 billion, up from N103.95 billion in 9M 2024, driven by a 75.99% surge in local sales to N154.87 billion, while export sales rose 19.64% to N19.09 billion. The Gross Profit margin widened to 64.43% (from 57.06% in 2024), and EBITDA margin improved to 51.91% (from 43.07%). This translated to a Net Profit of N60.33 billion, compared to N28.35 billion a year earlier, resulting in an EPS of N63.25, up from N29.71. The Net Profit margin strengthened to 34.68%, compared to 27.26% in 9M 2024.
Finance costs rose to N2.00 billion from N509.82 million in the previous year, mainly due to a net exchange loss of N1.33 billion, reversing a net exchange gain of N184.27 million recorded in 2024.
Q3 2025 Performance (Quarter-on-Quarter)
Quarterly revenue came in at N44.12 billion, down 38.49% from N71.72 billion in Q2 2025, primarily due to a sharp decline in local sales (-42.73% q/q). However, export sales grew by 12.26% q/q to N6.20 billion.
Although operational costs dropped by 32.48%, the decline was not enough to offset revenue losses, leading to lower profitability. The EBITDA margin fell to 46.48% from 51.24% in Q2, while the Net Profit margin eased to 29.00% from 35.97% in the previous quarter.
