Strong Financial Performance from Presco in First Half of 2026
Presco, a leading integrated agro-industrial company in Nigeria, has released its unaudited financial results for the half year ending June 30, 2026. The results highlight robust growth and solid shareholder returns.
Proposed Interim Dividend Underlines Commitment to Shareholders
The Board of Directors has proposed an interim dividend of N10 per common share, reinforcing Presco’s dedication to delivering consistent returns to its shareholders. With 1,166,666,667 shares outstanding, this proposal amounts to approximately 11.6 billion Naira in payouts.
Profit Before Tax Shows Notable Growth
In terms of financial performance, Presco reported a profit before tax (PBT) of N122.2 billion for the first half of 2026, marking a 9.3% increase from N111.9 billion in the same period of 2025. This growth is attributed to a significant 31.9% reduction in finance costs and disciplined cost management practices.
Stability in Sales Amid Challenging Conditions
Sales for the first half of 2026 remained nearly flat at N198.8 billion, slightly up from N198.7 billion a year earlier. Despite a challenging operating environment characterized by lower crude palm oil prices, Presco’s financial resilience is evident in its performance. The company accounted for 69% of its full-year PBT for 2025 in just the first half of this year.
Key Financial Metrics Reflect Operational Strength
Additional highlights from Presco’s performance include an EBITDA of N123.1 billion, equating to a margin of 61.9%. The company saw total capital rise by 13.8% to N503.6 billion, while total debt decreased significantly by 42.5%, totaling N277.8 billion. The current ratio stands impressively at 345.6%, demonstrating strong liquidity.
Focus on Strategic Growth and Financial Health
Presco remains committed to disciplined capital allocation and operational efficiency, which are crucial for sustainable growth. The interim dividend proposal exemplifies the company’s confidence in its business trajectory as it navigates evolving market conditions.
Leadership Commentary Provides Insights
Commenting on the positive results, Regi George, Managing Director and CEO, stated that the 9.3% increase in pre-tax profit primarily stemmed from reduced financing costs and focused cost optimization. He emphasized that the increase in equity by 13.8% and a significant reduction in debt reflects Presco’s commitment to strengthening its financial position, ensuring a stable future for the company and its shareholders.
