The Okomu Oil Palm Company Plc has posted a profit after tax of N11.54 billion for the year ended December 31,2021, representing a 292 per cent increase over the N2.94 billion recorded in the corresponding period of 2020.
Consequently, it declared a dividend of N8 per 50 Kobo ordinary shares paid from Wednesday, May 25,2022 to shareholders whose names appear on the register of members at the close of business on Friday, April 22,2022.
During the company’s 42nd Annual General Meeting (AGM) in Lagos, the Chairman, Gbenga Oyebode, said: “Following the global economic crisis in the year 2020, as a result of COVID-19, it was expected that the global economy would begin to show signs of recovery in 2021. However, several countries continued to grapple with COVID-19 lockdowns and travel bans, which left many companies reeling from logjams in supply chains worldwide.
“In Nigeria, notwithstanding her exit from a recession in the fourth quarter of 2020, triggered by the lockdown, it’s rippling effect still lingered on in 2021 as the nation witnessed a devastating surge in inflation, reaching the highest levels in four years amid skyrocketing food prices and poor purchasing power. Worsening insecurity issues in the country, a persistent drop in crude oil prices, and a lack of forex also continued to hinder growth for most businesses on the verge of recuperating from the after-effects of COVID-19.
“Commodity prices for both of our company’s products increased during 2021.
However, the lack of foreign exchange also assisted the company to see our crude palm oil (CPO) into the local market without having to compete with illegal imports in the past year.”
He continued: “The past year saw a 53 per cent increase in CPO prices year on year (YoY) while rubber prices increased by 39 per cent (YoY). CPO production was nearly three per cent higher than that of the same period of 2020, as rubber production was 26 per cent higher (YoY).
“Consolidated turnover for the year increased YoY by 60 per cent. Direct costs increased by 45 per cent YoY. The company paid 20 per cent lower company income tax YoY.
“In spite of the difficult 2021 business environment, I am pleased to announce that our company registered a total comprehensive income for 2021 of N12 billion, this being 489 per cent higher than 2020.”
Oyebode further revealed: “The Board of Directors has, therefore, recommended a dividend of N8 per ordinary share each held, subject to payment of withholding tax at the appropriate rate.
“As at the end of 2021, the total oil palm area was 19,060ha. No immature plantings or re-plantings were recorded. Total agricultural palm plantation costs for the year were 56 per cent higher YoY.
“During the year under review, the results of the company recorded a combined revenue totaling N37.39 billion, 60 per cent higher than 2020’s consolidated revenues.
“Earnings before tax (EBT) were 85 per cent higher YoY and taxes were 20 per cent lower YoY leading to a consolidated total comprehensive income for 2021, as stated earlier, of N12 billion, this being 489 per cent higher than 2020, mainly as a result of higher product prices.”
A further breakdown of the audited financial scorecard showed that profit before tax (PBT) was N16.1 billion, 85 per cent leap over the 2020 tally of N8.69 billion.
Total revenue was N37.4 billion in the year under review as against the 2020 figure of N23.4 billion – amounting to a 60 per cent increase.
The company’s net assets during the period was 19 per cent higher at N34.05 billion compared to the N28.62 billion posted for the year before.