WorldStage Newsonline– Okomu Oil has released its fourth quarter (Q4) 2017 results which showed that sales grew by 7% compared to Q4 2016 to N3.7 billion while profit before tax (PBT) and profit after tax (PAT) advanced by 147% and 222% to N2.0 billion and 2.5 billion respectively.
The strong bottom line was driven by a 2,000bp gross margin expansion and a net interest income of N61m versus a net charge of –N882m in the corresponding quarter of 2016.
Opex of N180m against N379m in Q4 2016 was not large enough to offset the positives.
On a full year basis, sales of N20.3bn grew by 41% while PBT and PAT grew by 89% and 80% to N11.1bn and N8.9bn respectively.
Although operating expenses grew by 29%, this was not enough to offset the strong sales growth, a 413bp y/y gross margin expansion to 79% and a net interest income of N7m versus a net interest charge of –N1.0bn in FY 2016.
A breakdown of the revenue figure showed that palm oil sales of N2.7bn were flat y/y while rubber sales advanced by 28% y/y to N985m. The rubber business now represents 27% of Okomu’s topline compared with 40% in 2011.
Year to date, Okomu shares have gained 6.4% vs the NSE ASI which has returned 7.8% this year.
