Okomu Oil Palm turnover up 79.6% y/y at ₦43.4bn in Q1’24
Okomu Oil Palm has posted a 79.6 per cent year-on-year increase in its turnover at 43.4 billion naira in the first quarter of this year. Graham Hefer, Managing Director at Okomu Oil Palm joins CNBC Africa to the company’s performance and outlook for the rest of this year.
Thu, 02 May 2024 14:23:02 GMT
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AI Generated Summary
- Okomu Oil Palm reports a significant 79.6% year-on-year increase in turnover, reaching 43.4 billion naira in Q1'24, driven by growth in local and export sales volumes.
- Challenges include cost pressures, with oil palm costs rising by 204% and rubber costs declining. Factors like inflation, employee salary increments, and currency devaluation contribute to cost fluctuations.
- The company emphasizes internal efficiencies, cost-effectiveness, and workforce productivity optimization while monitoring market stability and regulatory changes for sustainable growth.
Okomu Oil Palm, a leading oil palm production company, has reported a significant 79.6% year-on-year increase in turnover, reaching 43.4 billion naira in the first quarter of 2024. The company's Managing Director, Graham Hefer, discussed the performance highlights and the outlook for the remainder of the year in an exclusive interview with CNBC Africa. Hefer pointed out the substantial growth in both local and export sales volumes, indicating a positive trend for the company. However, he also highlighted some challenges faced by the company, notably in cost factors. He explained that while the cost of oil palm increased by around 204%, the cost of rubber experienced a decrease. He attributed the rise in costs to various factors, including inflation rates, employee salary increments, and currency devaluation. Despite these challenges, Okomu Oil Palm remains focused on enhancing internal efficiencies, ensuring cost-effectiveness, and optimizing workforce productivity. Hefer emphasized the importance of stability and certainty in the market, especially in terms of forex values, to facilitate better planning and decision-making for businesses. Regarding future expansion plans, Hefer mentioned the company's ongoing focus on maximizing existing resources and efficiency, without immediate expansion projects on the horizon. He highlighted the importance of Governor Obaseki's efforts in promoting Edo State as a hub for oil palm production, underscoring the significance of the Africa Continental Free Trade Area agreements on local industries. He also raised concerns about illegal smuggling and emphasized the need for tighter border controls to safeguard the interests of local companies. When discussing output projections, Hefer estimated that Okomu Oil Palm could achieve around 65,000 to 75,000 tonnes of Crude Palm Oil (CPO) and approximately 9,800 to 10,000 tonnes of dry rubber for the year. Despite the prevailing economic uncertainties and market challenges, Hefer expressed optimism and determination for Okomu Oil Palm's future performance. With a focus on operational excellence, cost-efficiency, and adherence to best practices, the company aims to navigate the current landscape and sustain its growth trajectory. As the oil palm industry continues to evolve amidst global trade dynamics and regulatory changes, Okomu Oil Palm remains committed to driving sustainable growth and contributing to the development of Nigeria's agriculture sector.