February 2, 2026/Cordros Report

Presco Plc (PRESCO) published its Q4-25 unaudited financials after the close of business on Friday (30 January), reporting a standalone EPS of NGN27.46 (Q4-24: NGN52.51), undermined by a 18.5% y/y decline in revenue and higher net finance costs (+330.6% y/y). For 2025FY, EPS surged by 81.6% y/y to NGN134.38 (2024FY: NGN74.01).

PRESCO’s revenue declined by 18.5% y/y in Q4-25 (2025FY: +59.6% y/y) primarily due to lower CPO prices (-10.0% y/y) during the period. Across business segments, crude and refined product sales (-28.3% y/y | 99.9% of revenue) declined while mill by-products sales (+916.7% y/y | 0.1% of revenue) increased. On a q/q basis, revenue declined by 25.2% to NGN56.69 billion (Q3-25: NGN75.76 billion).

Gross margin (-15.16ppts y/y) declined to 46.1% (2025FY: +146bps y/y to 68.9%) as cost of sales (+13.3% y/y) grew, while revenue declined. Notably, cost increases were primarily driven by higher production costs (+35.4% y/y) during the period. Meanwhile, EBIT and EBITDA margins contracted by 218bps y/y and 515bps y/y to 96.7% and 85.6%, respectively, (2025FY: +296bps y/y and +396bps y/y to 68.1% and 64.7%, respectively), amid an 11.4% y/y increase in operating expenses.

PRESCO’s net finance costs surged by 330.6% y/y to NGN9.51 billion (vs NGN2.21 billion in Q4-24), driven primarily by a 216.2% y/y increase in finance cost. The rise in finance costs is primarily attributed to a significant increase in interest expenses on loans and overdrafts (+211.9% y/y). For the 2025FY period, the company’s net finance cost increased by 184.9% y/y to NGN35.83 billion (2024FY: NGN12.57 billion).

Overall, PRESCO’s profit before tax declined by 36.0% y/y to NGN39.90 billion in Q4-25 (Q4-24: NGN60.97 billion), while profit after tax declined by 47.7% y/y to NGN27.46 billion (Q4-24: NGN52.51 billion), following a tax expense of NGN11.58 billion. For 2025FY, profit after tax increased by 76.8% y/y to NGN138.12 billion (2024FY: NGN78.10 billion).

Comment: PRESCO’s Q4-25 performance was impacted by the decline in CPO prices, which caused a contraction in both topline and bottom-line growth. However, the company delivered an impressive full-year performance reflecting higher production volumes and higher CPO prices. Looking ahead, we expect another impressive performance in 2026E, supported by elevated CPO prices and higher production volumes. Our estimates are under review.