Okomu Oil PAT Declines Despite High Revenue
Okomu oil palm company Plc released its financial result for 2018 first half (H1) ended June 30.
The result showed a gross revenue of ₦12.94 billion in H1 2018 representing a 3.72% growth from ₦12.48 billion in the corresponding period of 2017.
The cost of sales went up significantly by 39.70% from ₦1.29 billion to ₦1.80 billion due to increase in production of oil palm and rubber.
Finance income decreased from ₦240 million in H1 2017 to ₦206 million in H1 2018. This was due to a 14.08% dip in Interest on fixed deposit account, which constitutes a part of the finance income.
Profit before tax (PBT) fell by 11.09% from ₦1.58 billion to ₦1.00 billion while Profit after tax (PAT) declined to ₦5.94 billion in H1 2018 from ₦6.24 billion in the corresponding period of 2017.
Operating profit margin fell from 63.57% to 53.84% showing the effect of the increase in cost lines. Gross profit margin reduced to 86.10% from 89.68% in 2017 reflecting the impact of the rise in cost of sales.
The company’s financial health increased as current ratio spiked by 26% from 2.21x in 2017 to 2.78x and debt to equity ratio (D/E) dropped from 0.12x to 0.18x.
Earnings per share (EPS) declined marginally to ₦6.23 from ₦6.54 in H1 2017.