The Okomu Oil Palm Company Plc (NSE; Okomuoil) beats expectation with massive increase in revenue and profit in the first half of 2020, according to the management interim reports for the 6 months ended 30 June 2020, released to the Nigerian Stock Exchange (NSE) and the investing public.
Okomuoil turnover grew by 57.92% to N13.527 billion in H1 2020 from N8.565 billion reported in same period in 2019 similarly, the profit after tax rose by 58.44% to N4.007 billion from N2.529 billion in H1 2019. The EPS increased to N4.20
It is interesting to note that Okomuoil cost of sales represents just a fraction of the revenue. Despite the in increase in the company’s revenue, its cost of sales declined to N1.083 billion (only 8.01% of the revenue) from N1.692 billion it reported last year.
Okomuoil has a better than usual gross profit margin of 91.99%. The company reported a gross profit of N12.444 billion in the first half of 2020.
The net operating expenses rose to N6.634 billion from N3.962 billion in H1 2019, while finance cost increased to N310.649 million from N101.105 million reported last year.
Total assets rose to N49.491 billion as at 30 June 2020 from N43.595 billion as at 31 December 2019. The rise in assets is due to increases in inventory and bank & cash balances.
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Okomuoil reported positive net cash flow from its operating activities only whereas investing and financing activities was negative. The company reported cash and cash equivalents of N2.683 billion in H1 2020 down from N1.776 billion it posted in same period in 2019.
The company is into the business of development of oil and rubber plantations, palm oil milling, palm kernel processing and sale of wet cup lumps.
The share price on Tuesday rose by 6.31% to N74.95 following the release of the H1 reports as investors seem to be pleased with the company’s performance.
YTD the share price is up by 34.80% while in 2 years and 5 years it has risen by 0.33% and 188.27% respectively. The 52 week high and low prices are N77.40 and N40.15 per share respectively.
Below is the six year movement of the share price
Source; GTL mytradebook
Written by;
Ifunanya Ikueze
