Okomu Oil Palm Plc (OKOMUOIL) in its full year 2023 audited results reported an impressive 26.6% y/y growth in Revenue to N75.11bn from N59.32bn (FY 2022). On a q/q basis, Revenue declined, down 27.9% in Q4 to N14.46bn from N20.05bn recorded in Q3 2023. Though we observed a decline in CPO price in Q4 2023, we believe demand may have also been low. In FY 2023, the business grew its revenue from palm oil-produce by 24.7% to N67bn, rubber sales by 44.7% to N7.95bn, and palm oil processing by 54% to N120.4bn.
The adjusted Cost of Sales experienced a marginal 6.5% year-on-year increase to N12.52 billion in FY 2023 from N11.8 billion in FY 2022. This slight growth in the Cost of Sales, factoring in depreciation, was anticipated due to the local sourcing of rubber lumps and Fresh Fruit Bunches, which shielded costs from currency devaluation. Moreover, effective management of consumables expenses, upkeep, and harvesting & collection expenses contributed to this controlled increase. Consequently, this led to a notable 31.6% surge in Gross profit, reaching N62.6 billion.
