Okomu Oil Palm Plc published its fourth-quarter unaudited financials for the period ended December 31, 2025, reporting a 72.2% decline in standalone EPS to N3.36 against  N12.06 in 2024, bringing 2025 full year EPS to N66.60 against N41.89 2024.

The steep drop in earnings was driven by a -7.3% decline in revenue and a significant increase of +69.2% in OPEX during the period.

Revenue declined by 7.3%, primarily driven by weakness in both local (-9.1% y/y | 73.4% of revenue) and export (-2.0% y/y | 26.6% of revenue) sales.

Analysts attribute the subdued topline performance to lower Crude Palm Oil (CPO) prices, which fell by c.10.1% year on year  during the period. On a quarter to quarter basis, revenue declined by 45.1%, reflecting typical seasonal patterns in palm oil production.

Gross margin increased to 113.5%, following a likely inventory revaluation gain in the palm oil segment. This more than offset the segment’s actual costs, resulting in a net negative cost of sales of N5.51 billion.

Conversely, EBITDA and EBIT margins contracted to 22.7% and 16.2%, respectively, due to a 69.2% year on year uptick in operating expenses.

For 2025FY, EBITDA (+282bps y/y) and EBIT (+735bps y/y) margins expanded to 48.3% and 45.4%, respectively.

Below the operating line, OKOMUOIL recorded a net finance cost of N703.28 million in Q4-25 (vs a net finance income of N4.23 billion in fourth quarter of 2024, following a 696.3% year on year increase in finance cost, mainly driven by a significant increase in exchange losses to N10.93 billion.

For the 2025 full year period, the company recorded a net finance cost of N2.71 billion (vs net finance income of N3.83 billion in 2024 full year.

Overall, profit before tax declined by 74.3% y/y to N3.23 billion in fourth quarter of 2025 against N12.57 billion in fourth quarter of 2024.

Following a tax expense of N25.09 million against N1.06 billion in 2024, profit after tax came in at N3.20 billion against N11.51 billion in 2024.

For 2025 full year, profit after tax increased by 59.0% year on year to N63.53 billion N39.96 billion in 2024.

Looking ahead to 2026 full year market analyst  expect elevated global CPO prices, driven by constrained supply and rising demand, to support revenue growth. Additionally, strong volume growth in the rubber segment should provide further revenue uplift.