In the first half of 2021, Presco Plc’s revenue increased by 59.49%YoY to a record high of NGN21.46bn.
This revenue performance represents 76% of Management’s guidance for 9M:2021 (NGN28.24bn). In
our Q1:2021’s Earnings Update, we emphasized the global uptrend in the prices of Crude Palm Oil
(CPO). The persistent supply crunch and higher biodiesel mandates in Indonesia and Malaysia (the global
leaders in the oil palm industry) coupled with the higher prices of CPO substitutes (soybean oil,
sunflower oil etc.) have been the catalyst behind the rally in global CPO prices. It is important to note
that the uptrend continued into the second-quarter, giving local producers the leeway to adjust their
prices upwards. In 2021FY, we still anticipate robust revenue growth based on favorable price levels. We project a
top-line growth of 69.07% to NGN40.39bn in 2021FY. However, the cyclicality in CPO production,
which results in increased inventory levels in the second half of the year (regular harvest season)
poses a downside risk to this forecast.
Kindly access the full report using the link below:
Earnings Update – PRESCO H1 2021
