Since the start of year 2021, Okomu Oil Palm Plc has ridden on price rally to drive strong financial performance. The company’s revenue grew strongly in the first three quarters of year 2021 (79.73%, 69.26% and 45.66% year-on-year respectively). In Q4:2021 standalone, the firm recorded a 32.52%YoY increase in revenue to NGN6.35bn. This performance overshot the firm’s Q4:2021 forecast of NGN5.23bn by 22.49%. Cummulatively, revenue for 2021FY stood at NGN37.39bn (vs NGN23.41bn in 2020FY). On a product basis, Crude Palm Oil (CPO) sales grew by 55.25%YoY to NGN31.83bn. Earlier in the year, the firm attributed this growth to an increase in its CPO prices (+58.03%YoY to NGN610,000 per ton in H1:2021). The increase in local CPO prices was a direct consequence of the global price uptrend for CPO, largely resulting from the global supply constraints in key producing regions. The company also recorded significant growth in its rubber sales (representing 14.88% of total revenue). In 2021FY, rubber prices soared; reaching a 7-year high on account of heightened demand as chips (a key rubber derivative) become more heavily embedded in technological products. As a result, revenue from rubber segment soared by 91.30%YoY to NGN5.56bn in 2021FY.
