The Okomu Oil Palm Company PLC declared an interim Dividend of N8.00 per 50kobo ordinary share for period ended June 30, 2024.
The Interim dividend is subject to appropriate withholding tax that will be paid to shareholders whose names appear in the Register of Members as at the close of business on the 8th day of August 2024.
Okomu Oil advised shareholders with dividend warrants and share certificates that have remained unclaimed, or are yet to be presented for payment or returned for validation to complete the e-dividend registration or contact the Registrar.
The company, reported its Q2-2024 un-audited financials announcing a standalone EPS of N5.36 in Q2-24, which represented a 15.1% y/y decline from the prior year (Q2-23: N6.31).
The weaker outturn resulted from a marked increase in exchange losses (+288.63% y/y). Accordingly, H1-24 EPS stood at N21.17 (H1-23: N16.98) Okomu’s financials for the period shows revenue growth of 92.3% y/y in Q2-24, in line with expectations, primarily driven by solid growth in sales – local (+52.4% y/y | 89.2% of revenue) and export (-46.7% y/y | 10.8% of revenue).
However, on a q/q basis, revenue declined by 27.5% , the company’s Gross margin decreased by -23.01 ppts y/y to 36.1%, reflecting substantial cost pressures with cost of sales growing significantly by 200.5% y/y. We believe the higher costs emanated from the impact of the marked currency devaluation on the cost of fertilizers amid the elevated inflationary environment.
For H1-24, gross margin printed 59.4%, representing a 13.30ppts y/y decline. Against the preceding, EBIT margin fell by 10.03ppts y/y to 18.0% (H1-24: -793bps y/y to 40.7%), further compounded by a 12.0% increase in operating expenses.
OKOMUOIL recorded a positive net finance income in the period, following a significant increase in finance income to N3.50 billion (Q2-23: N14.83 million), which offset the 3.0x y/y jump in finance cost to N2.93 billion (Q2-23: N953.72 million).
Specifically, OKOMUOIL recorded a net exchange gain of N799.88 million (vs net exchange loss of N681.40 million in Q2-23), following a higher exchange gain of N3.50 billion (Q2-23: N13.73 million) and exchange loss of N2.70 billion (Q2-23: N695.13 million).
Overall, PBT declined by 22.3% y/y to NGN6.24 billion in Q2-24 (H1-24: +27.8% y/y to N29.27 billion). Following a tax expense of N1.12 billion, profit after tax printed NGN5.11 billion (H1-23: +24.7% y/y to N20.20 billion)….. Cordros Analysts
