January 30, 2026/Cordros Report
Okomu Oil Palm Plc (OKOMUOIL) published its Q4-25 unaudited financials today, reporting a 72.2% decline in standalone EPS to NGN3.36 (Q4-24: NGN12.06), bringing 2025FY EPS to NGN66.60 (2024FY: NGN41.89). The steep drop in earnings was driven by a decline in revenue (-7.3% y/y) and a significant increase in OPEX (+69.2 y/y) during the period.
Revenue declined by 7.3% y/y in Q4-25 (2025FY: +52.4% y/y), primarily driven by weakness in both local (-9.1% y/y | 73.4% of revenue) and export (-2.0% y/y | 26.6% of revenue) sales. We attribute the subdued topline performance to lower Crude Palm Oil (CPO) prices, which fell by c.10.1% y/y during the period. On a q/q basis, revenue declined by 45.1%, reflecting typical seasonal patterns in palm oil production.
Gross margin (+28.31ppts y/y) increased to 113.5%, following a likely inventory revaluation gain in the palm oil segment. This more than offset the segment’s actual costs, resulting in a net negative cost of sales (NGN5.51 billion). Conversely, EBITDA (-32.57ppts y/y) and EBIT (-15.70 ppts y/y) margins contracted to 22.7% and 16.2%, respectively, due to a 69.2% y/y uptick in operating expenses. For 2025FY, EBITDA (+282bps y/y) and EBIT (+735bps y/y) margins expanded to 48.3% and 45.4%, respectively.
Below the operating line, OKOMUOIL recorded a net finance cost of NGN703.28 million in Q4-25 (vs a net finance income of NGN4.23 billion in Q4-24) following a 696.3% y/y increase in finance cost, mainly driven by a significant increase in exchange losses (+14.5x y/y to NGN10.93 billion). For the 2025FY period, the company recorded a net finance cost of NGN2.71 billion (vs net finance income of NGN3.83 billion in 2024FY).
Overall, profit before tax declined by 74.3% y/y to NGN3.23 billion in Q4-25 (Q4-24: NGN12.57 billion). Following a tax expense of NGN25.09 million (Q4-24: NGN1.06 billion), profit after tax came in at NGN3.20 billion (Q4-24: NGN11.51 billion). For 2025FY, profit after tax increased by 59.0% y/y to NGN63.53 billion (2024FY: NGN39.96 billion).
Comment: OKOMUOIL’s Q4-25 performance was subdued, with profitability declining 72.2% y/y due to lower CPO prices and a 69.2% y/y increase in operating expenses. However, the full-year performance remained strong, with revenue up 52.4% and profitability up 59.0% y/y. Looking ahead to 2026FY, we expect elevated global CPO prices, driven by constrained supply and rising demand, to support revenue growth. Additionally, strong volume growth in the rubber segment should provide further revenue uplift. Our estimates are under review.
