This morning, we are beaming
our searchlight on quoted agriculture firms in Africa’s largest economy,
Nigeria. The chart, which highlights the revenue, profit, and cost and share
price performance of these firms will enable investors in taking informed
decisiosn.
Analysis of financial
results
The oil palm firms fared
well in the third quarter, although the two companies (Okomu and Presco)
recorded single-digit growth at the top-line level while double-digit growth
were recorded at the bottom-line level.
Okomu Nigeria plc in the Q3
of the year had 1.67 percent growth in revenue and 28.85 percent increase in
profit, while its competitor, Presco Nigeria plc, had revenue growth of 6.74
percent with profit increased by 33.90 percent.
While both firms are
embarking on expansion projects that culminated in cost increment, their
efficiency rate were quite impressive as Presco’s cost of sales margin and
operating expenses margin were 57.80 percent and 19.79 percent, respectively.
On the other hand, Okomu’s
cost of sales margin and operating expenses was 42.52 percent and 23.87
percent, respectively.
FTN Cocoa is the laggard;
the cocoa processing company has been bedeviled by copious costs that took a
toll on the firm’s performance. It recorded a reduction in revenue by 26
percent, as the company recorded losses in the review period.
FTN had costs eat into
profit as cost of sales margin was 216 percent, while operating expenses were
216 percent and 95.75 percent, respectively.
By
PATRICK ATUANYA and BALA
AUGIE
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