Okomu Oil Palm revenue grows 20.8% in Q3’23
Okomu Oil Palm has reported a 20.8 per cent growth in revenue to 60,4 billion naira in the third quarter of this year, driven by growth in local sales which stood at 60.6 billion naira. Graham Hefer, Managing Director at Okomu Oil Palm joins CNBC Africa to unpack the numbers.
Tue, 31 Oct 2023 14:21:56 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The impressive financial results for the third quarter of 2023 showcased a 20.8% increase in revenue, driven by surging local sales in the palm oil industry.
- Factors such as rising crude palm oil prices, improved volumes, and stringent cost management strategies significantly contributed to the company's positive performance.
- Challenges including inflation, currency devaluation, policy shifts, and energy costs are being closely monitored, with the company focusing on consolidating current operations and exploring alternative energy sources.
Okomu Oil Palm, a key player in the palm oil industry, has announced impressive financial results for the third quarter of 2023. The company reported a remarkable 20.8% growth in revenue, reaching 60.4 billion naira, largely attributed to a surge in local sales which stood at 60.6 billion naira. Graham Hefer, the Managing Director of Okomu Oil Palm, recently sat down with CNBC Africa to delve into the numbers and shed light on the factors driving this success. Hefer highlighted that the positive results were mainly due to an increase in crude palm oil (CPO) prices and volumes that were previously held back but are now being sold. These factors, combined with cost management strategies, played a crucial role in boosting the company's bottom line. However, Hefer also acknowledged challenges such as inflation rates, currency devaluation, and the impact of policy changes, particularly the removal of fuel subsidies and the floating of the Naira. He expressed concerns about the increasing costs incurred by the company due to high inflation and emphasized the need to closely monitor expenses. Despite these challenges, Okomu Oil Palm remains focused on consolidating its current operations and improving profitability before considering expansion or acquisitions. Looking ahead, Hefer stressed the importance of policy stability, particularly in the foreign exchange market, to create a more conducive business environment. He underscored the need for liquidity and a stabilized Naira to support businesses like Okomu Oil Palm. Furthermore, he highlighted the company's efforts to explore alternative energy sources such as solar power and turbines to mitigate rising energy costs. As the company navigates the complex economic landscape, Hefer remains cautiously optimistic but vigilant about the evolving policy environment and its potential impact on Okomu Oil Palm's operations and growth prospects.
