Presco Plc, a fully integrated agro-industrial establishment has released its financial statements for the first half period ended 30 June, 2024
A review of the report by Investogist shows that the company was able to grow its revenue by 83.1%, and grew its profit after tax by 157.75%.
Presco Plc was listed on the Nigerian Exchange on October 10, 2002 and has PRESCO as its ticker symbol.
Analysis of Statement of Comprehensive Income
Revenue earned by PRESCO went from N48.07bn at the same H1 period in 2023 to N88.02bn in H1 2024. This represents a 83.1% increase in its revenue.
The cost of sales went up only 36.61% to N22.32bn (H1 2023: N16.18bn), to give an impressive 74.5% Gross Profit Margin. The Gross Profit was up by 105.68%, to N63.59bn, from N31.89bn.
Selling and distribution expenses increased from N655.2mn to N1.15bn, while Administrative expenses rose from N9.71bn in H1 2023 to N15.18bn in H1 2024.
Profit Before Tax increased from N20.89bn reported in H1 2023, to N54.48bn in H1 2024.
PRESCO paid a total tax of N11.56bn for the Half Year period ended 30 June 2024 (H1 2023: N5.8bn).
The break-up of the taxes paid are as below;
- Income tax: N8.96bn (H1 2023: N4.28bn)
- Education tax: N1.40bn (H1 2023: N921.61mn)
- Deferred tax: N1.2bn (H1 2023: N600.2mn)
Profit after tax went up by an impressive 157.75% to N38.88bn from N15.08bn. Earnings per share increased by similar magnitude to N38.89
Analysis of Statement of Financial Position (Balance Sheet)
A review of the company’s balance sheet show about N20bn increase in the company’s total asset N195.81bn as at June 30, 2024 from N170.32bn as at 31 December 2023.
Its total liabilities also increased to N124.07bn from N113.16bn as at December 31, 2023
The increase in the liabilities standing came from the rise in the Trade and other payables which jumped to N26.83bn as at 30 June 2024 from N14.61bn as at December 31, 2023. Current tax liabilities also rose to N18.07bn from N10.4bn as at December 31, 2023.
An analysis of the company’s Equity column show an increment in Total equity from N57.16bn to N71.74bn, due to the increase in the retained earnings to N71.08bn from N56.5bn.
Analysis of Statement of Cash Flows
A review of the company’s statement of cash flows shows the below;
- Net cash generated from operating activities stood at N63.03bn
- Net cash used in investing activities stood at N17.4bn
- Net cash used in financing activities stood at N30.3bn
The company saw a slight increase in its cash and cash equivalent from N17.32bn as at 31 December 2023 to N17.84bn as at 30 June, 2024..
About the Company
Presco Plc was incorporated in Nigeria on 24th September, 1991 as Presco Industries Limited, a private limited liability Company, and became a public limited liability Company in February 2002.
Presco’s initial public offer was successfully completed, and since 9th October 2002 Presco Plc has been listed on the Nigerian Stock Exchange. The public offering of Presco consisted of the sale of approximately 160 million shares at NGN 5 each.
Presco Plc specializes in the cultivation of oil palms and in the extraction, refining and fractioning of crude palm oil into vegetable oil and palm stearin.
The company operates from two states, Obaretin Estate, Ologbo Estate and Sakponda Estate in Edo State and Cowan Estate in Delta State.
PRESCO have 1,000,000,000 outstanding shares and a market capitalization of N71.00 Billion.
60% of its shares is owned by Siat Group Belgium, while Nigerian Investors (institutional and private) own the remaining 40%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
