Presco Plc has reported a 9.3 per cent year-on-year increase in profit before tax (PBT) to ₦122.2 billion for the half-year ended 30 June 2026, as lower finance costs and disciplined cost management helped the agro-industrial company navigate a challenging operating environment.
The unaudited results released by the company also showed that the Board has proposed an interim dividend of ₦10 per ordinary share, underlining its commitment to delivering consistent returns to shareholders.
Revenue remained broadly unchanged at ₦198.8 billion, compared with ₦198.7 billion recorded in the corresponding period of 2025. Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₦123.1 billion, representing a healthy margin of 61.9 per cent.
The company attributed the improved profitability largely to a 31.9 per cent reduction in finance costs, which supported earnings despite softer crude palm oil prices and a high-cost operating environment.
Presco also strengthened its financial position during the period. Total equity increased by 13.8 per cent to ₦503.6 billion, while total liabilities declined sharply by 42.5 per cent to ₦277.8 billion. Retained earnings rose by 34 per cent to ₦258.4 billion, and the current ratio improved to 345.6 per cent, reflecting strong liquidity.
The first-half PBT represents about 69 per cent of the company's total pre-tax profit for the 2025 financial year, while revenue for the period exceeded 60 per cent of its full-year 2025 turnover.
Looking ahead, Presco said it would continue to focus on prudent capital allocation, operational efficiency and sustainable long-term value creation as it responds to evolving market conditions.
Commenting on the results, the Managing Director and Chief Executive Officer, Reji George, said “Our H1 2026 performance underscores the strength of our operational model in a challenging environment. The 9.3% growth in profit before tax, driven largely by a 31.9% reduction in financing costs, reflects our deliberate focus on cost optimization and balance sheet discipline. With equity up 13.8% and liabilities down 42.5%, we have further fortified our financial foundation. The proposed interim dividend of ₦10 per share signals our confidence in the business’s trajectory and our commitment to rewarding shareholders.”
The company also announced that its 2025 Annual General Meeting (AGM) has been postponed due to pending appeals arising from court rulings relating to its 2024 and 2025 AGMs.
According to Presco, it is awaiting the judgment of the Court of Appeal and reaffirmed its commitment to corporate governance, regulatory compliance and transparency with shareholders, adding that further updates will be provided as appropriate.
No comments:
Post a Comment