Okomu revenue up 58.4% in FY'22

Okomu Oil Palm, a key player in the palm oil industry, has reported a significant revenue growth of 58.4% in the fiscal year 2022, reaching a total of 59.2 billion Naira. This surge in revenue was primarily driven by robust local sales of their oil palm products. However, the company also experienced a notable uptick in operating expenses, which rose by 60.5% during the same period. Graham Hefer, the Managing Director of Okomu Oil Palm, recently joined CNBC Africa to discuss the financial results and shed light on the factors influencing their performance. Hefer pointed out that the high inflationary environment, both locally and globally, posed challenges for the company, leading to increased expenses. The difficulty in obtaining imported equipment due to exchange rate disparities further compounded their cost structure. Despite these hurdles, Okomu Oil Palm managed to navigate through by leveraging price increases to offset the rising expenses. The company also witnessed a remarkable surge in local sales, recording a nearly 90% increase. This spike in domestic demand, particularly in Nigeria, where there is a significant market for palm oil, played a vital role in sustaining their revenue growth amidst the challenging economic landscape. Additionally, the production and sale of rubber, referred to as the 'Cinderella' of the company, contributed positively by generating foreign exchange revenue. Looking ahead to 2023, Hefer shared insights into Okomu's plans for expansion and product offerings. He highlighted the successful launch of new oil mills, which have bolstered their production capacity to meet market demands. The company is optimistic about the upcoming year and aims to enhance their performance across both the oil palm and rubber segments through strategic initiatives. Addressing concerns about climate change and its potential impact on agricultural productivity, Hefer emphasized the company's proactive approach in monitoring and adapting to changing climatic conditions. Okomu Oil Palm is exploring research and development initiatives to develop crop varieties that are more resilient to fluctuating weather patterns. Furthermore, Hefer discussed Okomu's position within the African Continental Free Trade Area and emphasized the importance of safeguarding local industries from unfair competition. With Nigeria's large consumer base making it an attractive market, the company is keen on ensuring fair market practices and preventing the dumping of palm oil products from other countries. In conclusion, Hefer outlined Okomu Oil Palm's target of closing the existing supply-demand gap, aiming to increase their production to around 60,000 tons in the near term. Despite the challenges posed by rising demand and operational constraints, the company remains focused on sustainable growth and responsible market participation. As Okomu Oil Palm navigates through dynamic market conditions and works towards achieving its strategic goals, the company's resilience and proactive measures position them well for continued success in the palm oil industry.