WorldStage Newsonline– Presco Plc has released its second quarter 2024 (Q2-24) unaudited financials with 189.4% jump in profit after tax at N14.82 billion compared with N5.12 billion in Q2 2023.
Profit before tax increased by 159.8% y/y to N20.78 billion in Q2-24 (Q2-23: NGN8.00 billion).
The result showed that revenue grew by 73.9% y/y in Q2-24 (H1-24: +83.1% y/y), supported by the impact of naira devaluation on CPO prices and higher volumes.
The company recorded expansion in its sales of crude and refined products segment (+74.0% y/y) while the mill by-products segment declined (-93.8% y/y). On a quarter-on-quarter basis, revenue increased by 6.9%.
Gross margin (+10.00ppts y/y) increased to 69.9% in Q2-24 (Q2-23: 59.9% y/y) following a slower increase in the cost of sales (+38.5% y/y) relative to revenue (73.9% y/y).
There were significant cost pressures in the period, particularly in the upkeep of mature plantings, harvesting, and labour (+25.9% y/y); mill processing, refinery, and packaging (+171.1% y/y), and; repairs and maintenance (+403.1% y/y).
Consequently, EBITDA (+733bps) and EBIT (+12.27 ppts) margins rose to 52.5% and 50.0%, respectively, amid a 37.1% y/y increase in operating expenses.
Further down, net finance costs rose by 4.4% y/y to NGN1.94 billion in Q2-24 (Q2-23: NGN1.86 billion) following higher finance costs (+14.4% y/y) arising from higher interest on loans (+11.0% y/y) and overdraft (+60.4% y/y).
Furthermore, the company reported earning per share (EPS) of N14.82 (Q2-23: N5.12) and H1-24 EPS of N38.88 (H1-23: 15.08).
