Presco Plc (PRESCO) outperformed our expectation in H1'24, with its EPS of N38.88 (at 94.6% of our previous full-year estimate), necessitating a rejig of our projections. The company's outperformance primarily reflected the impact of material Naira depreciation on local prices of CPO in keeping with the implicit currency hedge status associated with investments in Nigerian oil palm producers. To be precise, even though Index Mundi reported a 7.5% YoY contraction in global CPO prices to $895.11 per MMt, an average Naira depreciation of 64.1% translated to a material rise in domestic prices. Consequently, aided by some possible volume gains, revenue rose by 83.1% YoY to N88.0 billion in the review period
