Okomu Oil Palm Plc has released its Q3 2024 unaudited financial results, reporting a 72.5% year-on-year increase in standalone earnings per share (EPS) to ₦8.54.

The company’s revenue grew by 44.4% year-on-year, driven by export sales (+49.8% y/y) and local sales (+38.4% y/y).

Naira devaluation positively impacted Crude Palm Oil (CPO) prices, contributing to the revenue growth.

However, gross margin contracted by 972 basis points to 51.1% due to significant cost pressures (+80.2% y/y).

Operating expenses declined by 19.8% year-on-year, while net finance income surged to ₦712.45 million.

Profit before tax increased by 80.6% year-on-year to ₦11.41 billion, and profit after tax rose by 72.5% year-on-year to ₦8.14 billion.

Analysts expect Okomu Oil Palm to maintain impressive topline growth, but caution against rising cost pressures impacting margins.