Okomu Oil Palm Raises Dividend by 100% to 300k for 2017

Okomu Oil Palm Plc has announced a dividend of 300kobo per share for the year ended December 31, 2017, showing an increase of 100per cent compared with 150 kobo paid the previous year. Although details of the audited financial results could not obtained, the company in a filing with the Nigerian Stock Exchange (NSE) said the dividend would be paid on June 25 to shareholders whose names are on the registrar of the as at May 15, 2018.

The company had in the company posted a revenue of N14.365 billion, showing an increase of 47 per cent over N9.738 billion. Finance income improved from N43 million in 2015 to N291 million, while finance cost equally surged from N429 million to N1.340 billion. Profit before tax (PBT) jumped by 103 per cent from N2.898 billion to N5.906 billion, while profit after tax (PAT) rose by 84 per cent to N4.910 billion, from N2.659 billion in 2015.

In terms of efficiency measured by profit margin, Okomu Oil Palm did well as net profit margin improved from 27.3 per cent in 2015 to 34.1 per cent in 2016. Based on the improved results, the company declared a dividend of N1.43 billion, which translates to 150 kobo per share.

The company consolidated on the 2016 performance during the first quarter ( Q1) ended March 31, 2017. Revenue stood at N5.896 billion in Q1 of 2017, up from N3.326 billion, cost of sale jumped from N529.775 million to N1.264billion. Despite the jump in cost of sale, gross profit improved significantly from N2.796 billion to N4.632 billion, while profit after tax rose to N3.069 billion, showing a growth of 92 per cent above the N1.595 billion in the corresponding period of 2016.

Looking at 2017 Q1 performance, FBN Quest said sales grew by 77 per cent to N5.9 billion, PBT grew by 108 per cent to N3.4 billion while PAT of N3.1 billion advanced by 92 per cent.

“Although gross margin contracted by -551bps to 78.6 per cent and operating expenses increased by 11 per cent, these negatives were more than offset by the strong sales growth, and to a lesser extent, a 94 per cent y/y decline in net finance costs leading to the strong bottom line. PAT growth was softer due to an effective tax rate of 9.6 per cent compared with 2.4 per cent in the corresponding quarter of 2016,” they said.