Presco Plc has reported a 9.3% growth in profit before tax (PBT) to N122.2 billion for the first half of 2026, up from N111.8 billion recorded in the corresponding period of 2025. The company’s board also proposed an interim dividend of N10 per share, reflecting its commitment to shareholder value amid strong operational performance.
Key Financial Highlights
The agribusiness giant’s revenue for the period rose by 12.5% to N245.6 billion, driven by higher crude palm oil and rubber sales volumes. Operating profit increased to N134.5 billion from N120.3 billion in H1 2025, representing an 11.8% rise. The company attributed the improved bottom line to better cost management and favourable commodity prices.
Dividend Declaration and Shareholder Returns
In a statement signed by the Company Secretary, the board proposed an interim dividend of N10 per share, payable to shareholders on the register as of 15 August 2026. The dividend payment, subject to withholding tax, will be disbursed on 30 August 2026. This marks an increase from the N8 interim dividend paid in the prior year.
Operational Performance and Strategic Initiatives
Presco’s crude palm oil production rose by 15% to 112,000 tonnes, while rubber output increased by 8% to 18,000 tonnes. The company noted that its mill expansion project in Edo State is on track, expected to boost processing capacity by 20% by year-end. Managing Director Dr. Felix Nwabuko stated, 'Our focus on operational efficiency and sustainable agriculture continues to yield positive results, enabling us to deliver enhanced value to stakeholders.'
Market Outlook and Analyst Reactions
Analysts at Lagos-based investment firm ABC Securities described the results as 'impressive,' noting that Presco’s margins have remained resilient despite macroeconomic headwinds. The company’s gross margin improved to 62.3% from 60.1% in the prior period. Presco’s share price rose by 3.5% on the Nigerian Exchange following the announcement, closing at N1,200 per share.
Industry Context and Competitive Position
Presco’s performance comes amid rising global demand for palm oil and rubber, with the company leveraging its integrated plantation and processing model to maintain a cost advantage. The firm’s total assets grew to N850.2 billion, up from N780.5 billion in December 2025, driven by capital expenditures on plantation expansion and factory upgrades.
Forward Guidance and Investor Confidence
Management expressed confidence in achieving its full-year target, citing favourable weather conditions and robust harvest yields. The board reaffirmed its commitment to dividend growth, supported by strong free cash flow generation. Industry observers expect Presco to continue benefiting from Nigeria's agricultural policy reforms and export incentives.
