November 4, 2026/CSL Report
Presco Plc reported a marginal top-line performance in its 9M 2026 results, with Revenue rising by 0.7% year-on-year (y/y) to ₦276.6 billion, up from ₦274.5 billion in 9M 2025. This slight growth was supported by an improved product mix, with Revenue from sales of Fresh Fruit Bunches (FFB) at ₦6.2 billion (as against no Revenue for the same period in 2025), while the Revenue from Sales of crude and refined products declined by 1.5% y/y to ₦270.2 billion, from ₦274.3 billion in 2025. Notably, total Revenue remained suppressed, largely because of import-supply side pressure on domestic pricing. Export Revenue (mainly Ghana) fell by about 30.0% y/y to ₦54.5 billion from ₦69.5 billion, which offset much of the domestic gain of ₦222.0 billion from ₦197.1 billion in 2025.
On a sequential basis, Q3 2026 Revenue declined by 20.5% quarter-on-quarter (q/q) to ₦77.8 billion from ₦97.9 billion in Q2 2026, making it the weakest quarter of the year thus far. Meanwhile, Cost of Sales (COS, excluding depreciation) declined by 7.9% y/y to ₦64.7 billion from ₦70.3 billion in 9M 2025, reflecting slower than growth in revenue supported by a significant decline in cost of raw materials consumed.
Consequently, Gross Profit grew by 3.7% y/y to ₦211.8 billion from ₦204.2 billion, and Gross Margin expanded by 2.2ppt to 76.6% from 74.4% in 9M 2025. However, the quarterly trend was unfavourable. In Q3, COS rose by 87.7% q/q to ₦37.7 billion from ₦20.1 billion, likely reflecting a lower cost throughput against a largely fixed plantation cost base. Consequently, Gross Profit declined by 48.5% q/q to ₦40.1 billion and Gross Margin compressed by 28.0ppt to 51.5%.
Financial Highlights:
- Revenue: +0.7% y/y to ₦276.5bn
- Cost of Sales: -7.9% y/y to ₦64.7bn
- EBITDA: -0.04%% y/y to ₦168.8bn
- Operating Profit: -1.9% y/y to ₦160.5bn
- Profit before Tax: +8.6% y/y to ₦151.5bn
Stock Rating: Sell
Target Price: ₦1,318.00 per share
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