Quick Read: Presco PLC reported a stellar 2024 performance, with a pre-tax profit of N128 billion, a 156% increase from 2023. Revenue surged 93% to N198.1 billion, driven by strong sales in Nigeria and Ghana. Despite rising costs, gross profit doubled to N135 billion, supported by exchange gains and asset revaluation. Total assets also grew significantly, reaching N422 billion.
Presco PLC has unveiled its full-year financial results for 2024, showcasing remarkable growth across key metrics. The company reported a pre-tax profit of N128 billion, a 156.05% surge from N50 billion in 2023. The fourth quarter alone contributed N60.9 billion in pre-tax profit, a 233.46% increase from the same period in 2023.
Revenue Growth Highlights
- Total Revenue: N198.1 billion, up 93.48% year-over-year (YoY) from N102.4 billion in 2023.
- Q4 Revenue: N69.5 billion, a 172.34% increase from N25.5 billion in Q4 2023.
- Sales Breakdown: 90.2% of revenue came from Nigeria (N179.1 billion), while Ghana contributed N18.9 billion.
Key Financial Metrics
- Cost of Sales: N63 billion, up 68.66% YoY.
- Gross Profit: N135 billion, a 107.74% increase from N65 billion in 2023.
- Administrative Expenses: N33 billion, up 39.91% YoY.
- Selling & Distribution Expenses: N2.8 billion, up 81.12% YoY.
- Exchange Gain: N6.1 billion, up 40.39% YoY.
- Biological Assets Revaluation Gain: N24.8 billion, up 102.86% YoY.
- Finance Costs: N12.7 billion, up 38.89% YoY.
- Finance Income: N2.6 billion, a staggering 5,467.18% increase YoY.
Operational Insights
Presco’s revenue was primarily driven by sales of crude and refined products, which accounted for 99.92% of total revenue (N198.14 billion). Mill by-products contributed a minimal N15.7 million.
The company faced rising costs, particularly in mill processing, refinery, and packaging, which made up 47.8% of the cost of sales. Employee costs and maintenance of mature plantings also contributed significantly.
Despite these challenges, Presco achieved a gross profit of N135 billion, reflecting efficient cost management and strong revenue growth.
Exchange Gains and Asset Revaluation
- Exchange Gains: N6.1 billion, up 40.39% YoY.
- Biological Assets Revaluation Gain: N24.8 billion, more than double the N12.2 billion reported in 2023.
Finance Costs and Income
Finance costs rose by 38.89% to N12.7 billion, largely due to loan interest. However, finance income skyrocketed by 5,467.18% to N2.6 billion, a significant improvement from N48.1 million in 2023.
Asset Position
- Total Assets: N422 billion, up from N170.3 billion in 2023.
- Non-Current Assets: N233.5 billion, with property, plant, and equipment making up 67.5%.
- Current Assets: N188.4 billion, driven by growth in biological assets and trade receivables.
Conclusion
Presco PLC’s 2024 financial performance underscores its robust growth trajectory, driven by strong revenue growth, efficient cost management, and significant gains from asset revaluation. With a pre-tax profit of N128 billion and total revenue nearing N200 billion, the company continues to solidify its position as a leading player in the industry.
