21 April 2017

Nigeria: Presco Shareholders to Receive 150k Dividend As Profit Soars

April 21, 2017

Presco Plc, a fully integrated palm oil company, will pay a dividend of 150 kobo per share for the year ended December 31, 2016, showing an increase of 50 per cent compared with 100 kobo paid in the previous year.

The improved dividend follows impressive results announced by the company for the year. According to the results, Presco Plc recorded gross revenue of N15.7 billion, showing an increase of 50.4 per cent from N10.4 billion in 2015. Cost of sales rose by 15.5 per cent. Gross profit rose by 70.5 per cent from N6.6 billion to N11.3 billion. Operation expenses rose by 46.6 per cent to N4.6 billion, from N3.1 billion, while operating profit jumped by 92 per cent to N6.7 billion, from N3.5 billion in 2015.

However, gains on biological assets of N24.7 billion recorded in 2016, compared with N1.1 billion in 2015, shot the profit before tax by 641 per cent to N31.2 billion compared with N4.2 billion in 2015.

Although tax rose significantly from N1.7 billion to N9.5 billion, profit after tax soared by 772 per cent to N21.7 billion from N2.5 billion in 2015. Hence, the directors have recommended a dividend of 150 kobo per share.

The Chairman of Presco Plc, Mr. Pierre Vandebeeck, had last year assured shareholders that the company was moving in the right direction.

"We are sailing in the right direction, making progress in all facets of our business and continually pushing forward in all fronts to sustain and further enhance our leadership position in our industry. 2016 will see further expansions in our oil palm plantation hectarage, additional investments in processing facilities and support infrastructure and commencement of developments in the 14,000 hectare new project site in Orhionmwon Local Government Area of Edo State for oil palm and rubber," he said.

Presco is a subsidiary of Siat s.a., a Belgian agro-industrial company, that specialises in industrial as well as smallholder plantations of tree crops.

The company is a fully integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining plant. It is at present the only one of such in Nigeria. The company specialises in the cultivation of oil palm and in the extraction, refining and fractionation of crude palm oil into finished products.

Nigeria

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