Okomu Oil Palm Company Plc has reported a record net profit of N39.9 billion for the 2024 financial year — nearly doubling its N20.6 billion profit in 2023.
The company’s Chairman, Mr. Gbenga Oyebode, disclosed this at the 45th Annual General Meeting (AGM) held on Thursday in Abuja. Presenting the annual report, he attributed the strong performance to rising commodity prices and strategic operational management despite significant economic headwinds.
“In 2024, our net profit from continuing operations rose by approximately 94%, reaching N39.9 billion from N20.6 billion in the previous year,” Oyebode announced.
He said the impressive financial results were largely driven by higher product prices. Crude Palm Oil (CPO) prices rose by about 35% year-on-year, while rubber prices surged by an exceptional 194%.
“Our results in 2024 reflect increased profitability, higher revenue, and continued expansion of our plantation operations,” Oyebode said. “We continue to grow and process oil palm and rubber. While our rubber is exported, our activities also deliver tangible benefits to local communities and shareholders, especially in Edo State where we are a major investor.”
Despite facing an 80% rise in operational costs, the company remained resilient, navigating a challenging economic environment marked by inflation, currency depreciation, and rising fuel prices.
“In Nigeria, the economic landscape was extremely tough in 2024,” he said. “Macroeconomic reforms introduced in 2023 led to significant pressure, including the Naira’s devaluation, surging fuel costs, and inflation reaching a 30-year high of 34.8%.”
He noted that the impact of these policies, along with increased debt servicing costs by the government, triggered widespread inflationary pressures — all of which affected the cost of doing business.
Oyebode reported that the company’s oil palm plantation covered 19,071 hectares, with 18,349 hectares classified as mature and 662 hectares newly planted or immature.
“Total revenue from all palm products in 2024 stood at N107.5 billion, a 60% increase from the previous year,” he stated. “However, cost of sales rose by 73% to N40.8 billion.”
Speaking on the operational realities, Managing Director Dr. Graham Hefer said the spike in palm oil prices was directly linked to the high cost of doing business in Nigeria.
Hefer explained that inflation, foreign exchange challenges, and rising input costs significantly impacted the company’s operations. Nevertheless, he praised the company’s effective cost management strategies.
“Despite these pressures, we’ve managed to increase revenue and deliver improved dividends to our shareholders,” he said.
Okomu Oil Palm remains one of Nigeria’s leading agro-industrial firms, with strong contributions to both national economic output and rural development.
