Presco Plc has reported a robust financial performance for the third quarter of 2025, posting a pre-tax profit of N27.67 billion, representing a 66% year-on-year increase from the N16.64 billion recorded in Q3 2024. The impressive performance underscores the company’s resilience and strong operational strategy amid Nigeria’s challenging economic environment.
Strong Nine-Month Performance Surpasses 2024 Full-Year Results
The company’s cumulative pre-tax profit for the nine months ended September 30, 2025, surged to N139.65 billion, a remarkable 108% jump year-on-year, already exceeding its total profit for the entire 2024 fiscal year by 9%.
Revenue also showed significant momentum, reaching N75.76 billion in Q3 2025, up by 87% YoY, while the nine-month total climbed to N274.5 billion—the highest figure the company has ever achieved in its operating history.
Second Interim Dividend Declared
Following this strong showing, the Board of Directors announced a second interim dividend of N10 per share, payable on November 21, 2025, to shareholders on record as of November 7, 2025.
This dividend marks Presco’s continued commitment to delivering value to investors, coming just months after its earlier interim payout for the year.
Management Attributes Success to Strategic Discipline
Speaking on the results, Reji George, Managing Director of Presco Plc, emphasized that the company’s consistent growth reflects the strength of its long-term business model and adaptability to Nigeria’s changing economic realities.
“Presco’s nine-month performance reflects not just strong numbers, but the strength of our model in an evolving Nigeria. Our discipline, efficiency, and innovation continue to translate into measurable growth,” George stated.
He added that the performance was supported by strong operational efficiency, improved agricultural yields, and sustained demand across the company’s product portfolio—especially in the edible oils segment.
Rising Cost Pressures Temper Margins
Despite the positive top-line and bottom-line growth, Presco faced rising cost pressures during the quarter. The cost of sales jumped by 244% YoY to N46.92 billion, bringing the nine-month total to N72.41 billion, a 101% YoY increase.
As a result, the gross profit for Q3 grew by a modest 7.23% to N28.84 billion, narrowing the gross margin to 38%. However, for the nine-month period, Presco maintained a robust gross profit of N202 billion, up 118.5% YoY, with a healthy 74% margin.
Operating and Financial Costs
Operating profit for the quarter stood at N36.04 billion, reflecting a 76% YoY increase, supported by higher other income and foreign exchange gains. However, finance costs rose sharply by 161% YoY to N10.48 billion, bringing the nine-month finance cost to N29.98 billion—a steep 255% increase compared to the previous year.
Despite these cost increases, Presco recorded a post-tax profit of N21.94 billion for the quarter, a 70% rise YoY from N12.89 billion in Q3 2024.
Strong Balance Sheet
Presco’s total assets grew by 29% YoY to N612.82 billion, driven by expansion in property, plant, and equipment, which stood at N290.37 billion.
Meanwhile, retained earnings rose by 54% to N195.52 billion, even though total equity saw a slight decline of 4.24% to N202.23 billion.
Key Financial Highlights (Q3 2025 vs Q3 2024)
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Revenue: N75.76 billion (+86.85% YoY)
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Cost of Sales: N46.92 billion (+243.79% YoY)
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Gross Profit: N28.84 billion (+7.23% YoY)
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Operating Profit: N36.04 billion (+76.14% YoY)
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Post-Tax Profit: N21.94 billion (+70.20% YoY)
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Total Assets: N612.82 billion (+28.99% YoY)
Share Price Performance
As of October 22, 2025, Presco Plc’s shares traded at N1,479.90 per share, representing a year-to-date gain of 212%, reflecting strong investor confidence in the company’s fundamentals and growth outlook.
Outlook
With its continuous expansion, strong cash flows, and dividend consistency, Presco Plc remains one of Nigeria’s top-performing companies in the agribusiness and manufacturing sectors. The firm’s ability to maintain double-digit growth amid inflationary pressures highlights its operational excellence and strategic foresight going into 2026.
