The OKOMU Oil Palm Company Plc, published its unaudited fourth quarter financials statements for the period ended December 31, 2022, reporting a loss per share of NGN0.75 in against NGN0.07 in 2021. For 2022 full year, the results show a 50.2% y/y growth in EPS to NGN18.17 (2021FY: NGN12.10).
Revenue grew by 42.8% y/y in Q4-22 (2022FY: +58.4% y/y), primarily driven by sustained growth in the local (+50.1% y/y | 82.3% of revenue) and export (+16.6% y/y | 17.7% of revenue) sales lines. However, on a quarter-on-quarter basis, revenue declined by 3.8% due to a decline in local sales (-11.3% q/q).
Gross margin turned positive as it came in at 40.6% for the quarter (Q4-21: 33.9%), as cost of sales margin reduced to 59.4% (Q4-21: 133.9%). We highlight that the cost pressures in the period emanated from higher (1) diesel prices and (2) fertilizer costs. Accordingly, operating profit settled lower at NGN97.03 million (Q4-21: NGN1.31 billion), amid a 208.9% y/y fall in operating expenses.
Net finance cost rose to NGN1.85 billion (Q4-21: NGN117.47 million), following a substantial increase in finance costs (NGN1.73 billion vs NGN68.56 million in Q4-21). We highlight that the sharp increase in finance cost was mainly due to higher interest on long-term loans (NGN1.02 billion vs NGN33.82 million in Q4-21).
Overall, the loss before tax came in at NGN1.70 billion (Q4-21: NGN1.30 billion). Following a tax credit of NGN988.46 million, a loss after tax of NGN713.67 million (Q4-21: NGN64.56 million) was recorded.
