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Presco Plc, Nigeria’s fully integrated agro-industrial company, has reported a 9.3% year-on-year increase in profit before tax (PBT) to ₦122.2 billion for the first half of 2026, despite a challenging cost environment and softer crude palm oil prices.
The company also proposed an interim dividend of ₦10 per ordinary share, as the board signalled continued confidence in the business and its ability to generate shareholder value.
Presco’s unaudited results for the six months ended June 30, 2026, showed that PBT rose from ₦111.9 billion in H1 2025 to ₦122.2 billion in the period under review. The company attributed the improvement largely to a 31.9% reduction in finance costs and tighter cost management.
Revenue Holds Steady at ₦198.8bn
Presco’s revenue remained largely unchanged during the period, increasing marginally from ₦198.7 billion in H1 2025 to ₦198.8 billion in H1 2026.
Despite the limited movement in revenue, the company delivered ₦123.1 billion in EBITDA, translating to a strong 61.9% EBITDA margin.
Presco said its first-half PBT represented about 69% of its full-year 2025 PBT, while first-half revenue exceeded 60% of the previous year’s full-year revenue.
The figures point to stronger cost efficiency and financial resilience even as the company navigated elevated operating costs and weaker crude palm oil prices.
Balance Sheet Strengthens
The company’s balance sheet also recorded notable improvements during the six-month period.
Total equity increased 13.8% to ₦503.6 billion, while total liabilities fell sharply by 42.5% to ₦277.8 billion.
Retained earnings climbed 34% to ₦258.4 billion, reflecting the company’s stronger accumulated earnings position.
Presco’s current ratio stood at 345.6%, indicating a substantial liquidity position and its capacity to meet short-term obligations.
The company said the balance-sheet improvements reflect its focus on disciplined capital allocation, operational efficiency and strengthening its financial foundation.
₦10 Interim Dividend Proposed
The board’s proposed ₦10-per-share interim dividend reinforces Presco’s commitment to shareholder returns.
Management said the dividend reflects confidence in the company’s business trajectory while maintaining its focus on long-term value creation.
Presco’s Managing Director and Chief Executive Officer, Reji George, said the H1 performance demonstrated the resilience of the company’s operating model, particularly the impact of lower financing costs and tighter balance-sheet management.
According to George, the growth in equity alongside the reduction in liabilities has further strengthened the company’s financial position.
Cost Management Drives Profit Growth
While revenue remained broadly flat, the reduction in financing expenses provided a major boost to profitability.
Finance costs declined by 31.9%, helping Presco deliver higher PBT despite the difficult operating environment.
The result highlights the importance of cost control to the company’s earnings performance at a time when businesses across Nigeria continue to contend with elevated input and operating expenses.
Presco said it will continue to prioritise efficient capital deployment and operational discipline as market conditions evolve.
2025 AGM Postponed
Meanwhile, Presco disclosed that its 2025 Annual General Meeting (AGM) has been postponed because of pending appeals arising from court rulings concerning the company’s 2024 and 2025 AGMs.
The company said it is awaiting the Court of Appeal’s judgment before proceeding with the meeting.
Presco reaffirmed its commitment to corporate governance, regulatory compliance and transparency with shareholders, adding that further updates would be provided when appropriate.
West African Footprint
Presco operates across the edible oils value chain, covering the cultivation of oil palm as well as the production, refining and marketing of specialty fats and oils.
Its operations are supported by subsidiaries including Ghana Oil Palm Development Company (GOPDC), Siat Nigeria Limited and Saro Oil Palm Limited, giving the company a broader footprint across West Africa.
With its first-half earnings already accounting for a significant portion of its 2025 full-year PBT and its balance sheet strengthening, Presco enters the second half of 2026 with management focused on sustaining operational efficiency and delivering long-term value to shareholders.
