Presco reports 71% growth in H1’2020 profit

Presco Plc has posted 70.55 per cent increase in profit after tax for the half-year ended June 30, 2020.

According to a report obtained from the Nigerian Stock Exchange, the unaudited financial result for the half-year showed profit after tax of N4.39bn from N2.57bn recorded in 2019, accounting for a growth of 70.55 per cent.

Profit before tax stood at N5.77bn in 2020 from N3.44bn a year earlier, representing an increase of 67.73 per cent.

Revenue equally grew to N13.46bn during the period under review from N10.40bn in 2019, amounting for an increase of 29.35 per cent while the cost of sales stood at N4.42bn from N3.56bn in 2019.

Presco posted 15.88 per cent drop in profit after tax for the first quarter ended March 30, 2020.

The unaudited financial result for the first quarter showed profit after tax of N1.80bn from N2.14bn recorded in 2019, accounting for a drop of 15.88 per cent.

Profit before tax stood at N2.353bn in 2020 from N2.576bn a year earlier, representing a decline of 8.66 per cent.

Revenue equally declined to N5.38bn during the period under review from N5.51bn in 2019, amounting for a decrease of 2.38 per cent while cost of sales stood at N4.20bn from N4.38bn in 2019.

Presco, a palm oil processing firm listed on the Nigerian Stock Exchange, recently signed a partnership deal with the Edo State Government to develop high-yielding oil palm seeds in the state.

The project is part of the Edo State Oil Palm Programme.

The Chairman, Presco, Pierre Vandebeeck, explained that the deal would enable his company to develop smallholder oil palm farms using technology.

He said Presco was contracted as the company to execute the project  because it had a technology for multiplying seeds called in-vitro culture.

Presco boss disclosed that the company planned to create a special company in Nigeria for the propagation and distribution of high-yielding planting materials.

He said that Edo was regarded as a first choice location because of its ease of doing business, friendly government policies and hospitality in the state.

Speaking on the partnership, Executive Governor, Edo State, Godwin Obaseki, stated that the development of the high-yielding seeds was necessary to make the business more profitable for farmers as oil palm had a long gestation period.

“We want to collaborate in the area of research to have one of the world’s best planting materials. This is so that we can go back to where we used to be in terms of oil palm production in the world. Presco has a laboratory in Europe and they are thinking of expanding the laboratory here to Nigeria so that they can reproduce high-quality planting materials,” he said.

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