Okomu Oil records N75bn gross earnings in 2023

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The Okumu Oil Palm Company Plc, said it recorded a gross earning of N75.2 billion in 2023 in line with its strategic objectives and excellence.

The Chairman of the company, Mr Gbenga Oyebode, said this during the 44th Annual General Meeting (AGM) of the company held on Thursday in Abuja.

Oyebode said in spite of the harsh operating and economic environment in the year under review, the company recorded some major strides.

“This marks a commendable 27 per cent increase over the previous year.

“Earnings before tax (EBT) witnessed a substantial increase of 44 per cent year-on-year, underscoring our unwavering commitment to value creation and financial prudence,” he said.

According to Oyebode, the company achieved a total income of N20 billion in 2023, representing a 27 per cent increase over the previous year.

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“This remarkable performance is primarily driven by inflationary based increases in the prices of our core products.

Stakeholders during the 44th Okomu Oil Annual General Meeting in Abuja on Thursday

“Crude Palm Oil (CPO) prices experienced a notable 22 per cent year-on-year increase, coupled with a 28 per cent rise in rubber prices.

“Notwithstanding the challenges in production volume due to the El Nino climatic phenomenon, our consolidated turnover surged by 27 per cent.

“It underscores the resilience and adaptability of our business model in the face of adversity,” he said.

Oyebode said the Board of Directors had proposed payment of final dividend of N14 for every ordinary share of 50 kobo each for approval.

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“This final dividend, if approved, in addition to the pald-out interim dividend of 44.50 kobo amounts to a total dividend of 18.50 kobo for every ordinary share of 50 kobo each.

“If approved, the final dividend will be paid on May 23 to shareholders whose names appeared in the company’s register of members at the close of business on the qualification date,” he said.

The chairman said on Operational Performance by Sector, the total Fresh Fruit Bunches (FFB) production increased by 25.9 per cent compared to the previous year.

“In spite of the increase in production costs and lower production volumes, our operational efficiencies enabled us to achieve significant growth in CPO sales and turnover.

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“Similarly, our rubber sector navigated challenges with agility and foresight, registering a turnover of N7.9 billion for the year,” he said.

Oyebode commended the shareholders, regulators and the management team for their commitment, expressing optimism for a better 2024.

NAN reports that the shareholders commended efforts of the management in driving the company.

They, however, expressed concerns about the issue of insecurity and general hardship in the country.

They urged the Federal Government to look into the various challenges, saying “if the economy improves, crime will reduce.” (NAN)

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