Presco Plc (PRESCO) in its audited FY 2023 results reported a 26.4% y/y growth in Revenue to N102.42bn from N81.03bn (FY 2022). However, on a q/q basis, Revenue was down 11.3% to N25.55bn (Q4 2023) from N28.8bn (Q3 2023) possibly due to the observed decline in CPO price during the quarter. The overall topline growth in the year was driven by improved sales of CPO, mill by-products and Fresh fruit Bunches (FFB).
Cost of Sales (ex-depreciation) moved in tandem with Revenue growth, up 22.5 % y/y to N34.55bn from N28.2bn (FY 2022), and was down 19.5% q/q. The company’s Gross margin increased marginally in the reporting period to 66.3% from 65.2% (FY 2022). Meanwhile, Gross Profit grew by 28.5% y/y to N67.86bn from N52.83bn but was down 5.6% q/q.
Operating Expenses (ex-depreciation) rose moderately by 27.8% y/y to N21.21bn from N16.32bn (FY 2022) and EBITDA rose by 27.8% y/y to N46.67bn from N36.5bn (FY 2022). CAPEX incurred in the period for business operations was lower compared to 2022 and provision for Depreciation & Amortisation declined marginally by 0.3% y/y to N4.2bn from N4.19bn (FY 2022). Overall, the company reported Operating Profit of N42.46bn for FY 2023, a 31.4%y/y increase, and N7.1bn in Q4 2023, a decline of 35.7% q/q.
