Okomu Oil Palm posts ₦74.9bn in turnover in FY’23

Okomu Oil Palm, a key player in the Nigerian agricultural sector, has reported a significant 26.5 per cent growth in gross revenue for the full year 2023, reaching 74.9 billion naira. The company's success has been largely attributed to a boost in both local and export sales, despite facing challenges such as the current business environment and foreign exchange issues. Graham Hefer, the Managing Director at Okomu Oil Palm, recently discussed the company's performance in an exclusive interview on CNBC Africa. In the interview, Hefer expressed satisfaction with the financial results, highlighting a 25 per cent increase in turnover compared to the previous year. He mentioned that although the cost of sales rose by 35 per cent, Okomu Oil Palm managed to enhance its profit margins through price increases and a sustainable improvement in crop yields. Additionally, the company implemented cost-cutting measures to mitigate challenges related to high inflation, forex scarcity, and other external factors, ultimately achieving better-than-expected outcomes. Amidst economic uncertainties in Nigeria, Hefer addressed concerns about the devaluation of the Naira, increasing inflation rates, and rising energy costs. He emphasized the importance of leveraging forex generated from rubber sales to buffer the impact of forex scarcity on the company's operations. Okomu Oil Palm has also invested in renewable energy solutions, such as turbines powered by biomass, to reduce reliance on expensive fuel sources. Looking ahead, Okomu Oil Palm is focused on strengthening internally generated funds to avoid taking on additional debt in a challenging economic environment characterized by high inflation and interest rates. The company's strategy involves prioritizing maintenance activities over expansion projects, optimizing operational efficiency, and ensuring a competitive market position to benefit shareholders. Furthermore, Okomu Oil Palm is exploring opportunities to collaborate with smallholder farmers in both the rubber and oil palm sectors to increase production volumes. By offering fair prices and support to these farmers, the company aims to enhance crop yields and foster mutually beneficial partnerships. In conclusion, Okomu Oil Palm's solid financial performance in 2023 reflects its resilience and strategic approach to navigating complex market conditions. Despite external challenges, the company's ability to adapt, innovate, and prioritize cost management has enabled it to achieve growth and profitability. With a commitment to sustainability and operational excellence, Okomu Oil Palm remains a key player in Nigeria's agricultural landscape, poised for future success.