Presco Plc reported a modest year on year (y/y) Revenue growth of 7.5% in Q1 2026, with Revenue rising to ₦100.9 billion from ₦93.8 billion recorded in Q1 2025. On a quarter on quarter (q/q) basis, Revenue expanded significantly by 77.9% from ₦56.7 billion in Q4 2025. The growth in first quarter Revenue was primarily supported by sustained domestic demand for crude palm oil (CPO) across both industrial and household segments.

Cost of Sales declined notably by 13.1% y/y to ₦6.9 billion in Q1 2026, compared with ₦8.0 billion recorded in Q1 2025. The decline was primarily driven by a substantial 92.7% reduction in the cost of raw materials consumed, reflecting improved resource optimization across the company’s oil palm operations. Consequently, Gross Profit increased by 9.5% y/y to ₦93.95 billion from ₦85.83 billion, while gross margin improved slightly to 93.1% from 91.5% in the corresponding period of 2025.

In 2025, Presco completed the acquisition of the remaining 48% equity interest in Ghana Oil Palm Development Company (GOPDC) Limited, resulting in full ownership and the consolidation of the business as a wholly owned subsidiary. In the same year, the Company also acquired 100% of the issued share capital of Saro Oil Palm Limited (SOP), a Nigerian incorporated oil palm plantation company with significant plantation assets and related operations within Nigeria. These acquisitions substantially expanded the Group’s production capacity and increased its plantation footprint to six estates, in line with Presco’s strategic objective of strengthening its integrated palm oil operations across West Africa.

We have revised our FY estimates following the release of Q1 numbers and our projected PBT is estimated at ₦281.2 billion. We maintain a Hold recommendation on the stock with a price target of ₦2,357/share, compared with the current market price of ₦2,300/share. The stock continues to trade at a premium to its MEA peers, with current EV/EBITDA multiple of 12.48x versus the selected peer average of 11.77x. Our price target is derived using a 60:40 blend of discounted cash flow (DCF) valuation and relative valuation methodologies.

To read full report, click on the link below​​

​Presco Plc Q1 2026 Company Update.pdf​

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