OKOMU OIL PALM PLC PROJECTS REVENUE TO DECLINE BY 34.9% IN Q3 2024

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Olori Uwem

Member
Mar 18, 2024
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OKOMU OIL PALM PLC PROJECTS REVENUE TO DECLINE BY 34.9% IN Q3 2024

Okomu Oil Palm Plc has forecasted a 34.9% drop in revenue for Q3 2024 compared to the same period in 2023. The company's projected turnover for Q3 2024 is N13.047 billion, down from N20.047 billion in Q3 2023, where it recorded a profit after tax of N4.7 billion. The forecasted profit after tax for Q3 2024 is expected to plummet by 77.6% to N1.057 billion.

Key financial projections for Q3 2024 include:
- Turnover: N13.047 billion
- Cost of Sales: N11.99 billion
- Profit Before Tax: N1.05 billion
- Profit After Tax: N1.057 billion

In Q1 2024, the company reported a turnover of N43.48 billion and a profit after tax of N15.08 billion, indicating a significant projected decline of 93.03% in PAT from Q1 to Q3 2024.

CHALLENGES AND CONTEXT:
- Security Issues: The company has faced attacks by a militant group, leading to the death of staff and impacting operations.
- Economic Factors: Depreciation of the naira, foreign exchange shortages, and insufficient infrastructure have also affected performance.
- Government Policies: Multiple taxation and other regulations present significant hurdles.

In its FY 2023 audited financial report, Okomu Oil Palm Plc reported a revenue of N75.11 billion and a profit of N20.65 billion, marking a 27% increase from the previous year.