Presco Plc published its third quarter unaudited financials for the period ended September 30, 2023, revealing a significant increase in standalone EPS to N8.40 against N2.40 that was recorded in the same period in 2022.

This was underpinned by impressive revenue growth of 64.6% and lower net finance costs 5.3%. Presc o’s revenue grew by 64.6%, primarily due to (1) effect of devaluation on local Crude Palm Oil (CPO) prices, and (2) PRESCO’s volume deluge in 2023. Sequentially, on a quarter to quarter basis, turnover increased by 10.1%.

Gross margin increased to 59.2%, following a slower increase in the cost of sales, relative to revenue growth. Analysts attribute the higher cost to the impact of increased fertilizer costs in the period.

Consequently, EBITDA (+10.70ppts) and EBIT (+12.61ppts) margins rose to 48.1% and 44.6%, respectively, following the stronger gross margin amid a rise in operating expenses 32.0% . Net finance charges declined by 5.3% to N1.99 billion against N2.10 billion in 2022, driven by a contraction in finance cost amid a N20.97 million gain in finance income.

Profit before tax increased by 210.6% to N10.85 billion against N3.49 billion in 2022. A tax expense of  N2.45 billion resulted in a profit after tax of N8.40 billion in the period compared to N2.40 billion in 2022.

Considering the resilience witnessed so far in 2023, markets expect the company to see out the year positively, maintaining strong expansions in its top and bottom lines.