6M 2017 Performance Analysis: Revenue and Net Income grew by 65.3% and 73.4% respectively.
Okomu Oil Palm Company Plc (”Okomuoil” or the ”Company”) recently released its unaudited 6M 2017 results for the period ended June 30th, 2017.
The Company reported a revenue of N12.48bn ($34.2m), representing a growth of 65.3% from N7.55bn ($20.7m)recorded in 6M 2016. The comparative strong growth recorded in the top line could be adduced to impact of recent upgrade in production line. This, we think has become a major stimulator to Okomu’s business model both in the medium and long term.
Cost heads reflects economic dynamics:

Cost heads were mixed due to varied dynamics within the economic space. Cost of sales for instance went up by 98.1% and reflected the rise in the volume of Oil Palm and Rubber sold. It spiked up to N1.27 billion ($3.5m) from N649.61 million (N1.9m) in 6M 2016. OPEX was 13.9% higher at N3.26 billion ($8.93m) against 6M 2016 and equally higher than 11.1% posted in 3M 2017. Finance cost went up by 122.4% at N366.23 million ($1.0m) and higher than 70.6% recorded in 3M 2017.

Boosters of sales/revenues in 6M ’17

Okomu revenue growth was boosted by Naira devaluation which romped up the prices of Palm Oil and Rubber in the market place. For instance, five (5) liters of Palm Oil moved from N1,300 in H1 ’16 to N2,500 in H1 ’17, representing a 92.3% appreciation. This obviously impacted on the revenue reported in the period. Palm Oil sales returns moved up to N1.15 billion ($3.16m), representing a growth of 111.9% over N582.82 million reported in 6M ’16.

Click here to download the full Okomu OilPalm Plc 6M 2017 report.  

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