Okomu Oil Palm Plc has projected its revenue for the third quarter of 2024 to drop by 34.9% compared to the same quarter of 2023.
The company disclosed this in a statement in its earnings forecast for Q3, 2024 to the NGX where it projected turnover to reach N13.047 billion for the period. The company in the third quarter of 2023 recorded a turnover of N20.047 billion and a profit after tax of N4.7 billion.
In its forecast for the three months under review, the company projected profit after tax to decline by 77.6% to N1.057 billion from the figure reported in the corresponding quarter.
More surprising is that the company expected cost of sales including admin expenses in Q3 2024 is higher than what was recorded in Q3 2023 despite an anticipated decline in turnover.
The forecast for profit and loss for the company are as follows;
- Turnover- N13.04 billion
- Cost of Sales- 11.99 billion
- Profit Before Taxation- N1.05 billion
- Profit After Taxation- N1.057 billion
In the first quarter of 2024, the company- Okomu Oil Palm recorded a turnover of N43.48 billion with profit after tax of N15.08 billion. When compared with the anticipated revenue in Q3, it marks a projected decline of 93.03% in PAT between Q1 and Q3.
What you should know
The anticipated decline in turnover for Q3 may not be unconnected to the security challenges the company has been battling in recent times. Last month the company reported attacks at its facility and host communities by a militant group leading to the death of its staff.
- The Managing Director of the company explained that the attacks stemmed from political, ethnic, and ego-driven aspirations for resource control. He urged the state government to promptly tackle the security challenges in the region and across the state to regain investor trust before they consider withdrawing.
- Furthermore, the company’s M.D, Graham Heifer in an interview with the News Agency of Nigeria (NAN) stated that company halted rubber farming last year due to the same security issues making it unable to fulfill its obligations.
- The company further indicated that besides insecurity, the depreciation of the naira, foreign exchange shortages, and insufficient infrastructure have adversely affected its operations.
- Also emphasized that specific government policies and regulations, notably multiple taxation, present significant hurdles for the firm.
- In its audited financial report for FY 2023, Okomu Oil Palm Plc reported revenue of N75.11 billion- an increase of 27% from 2022. Its profit for the year stood at N20.65 billion- an increase of 27% compared to the previous year.