Presco Plc posts ₦151.5B profit in 9M 2026, cuts debt 57%
Presco Plc reports 8.5% year-on-year growth in group profit before tax to ₦151.5 billion for the first nine months of 2026, despite inflation and falling edible oil prices. The standalone business performed even stronger—profit before tax jumped 12.7% to ₦96.9 billion, with after-tax profit rising 11.9% to ₦68.7 billion.
The company achieved this while slashing total borrowings by 57% to ₦137.1 billion (a ₦180.2 billion reduction) and cutting finance costs 34.5% to ₦19.6 billion. Gross profit margins held above 73% at ₦202.8 billion. Shareholders' equity grew 10.1% to ₦487.3 billion, backed by ₦135.2 billion in cash.
Nigeria revenue rose 12.7% to ₦222 billion, reinforcing the core market strength. A key catalyst: Fresh Fruit Bunches production from the newly acquired Saro Oil Palm plantation begins in Q4 2026, set to expand capacity further.
For investors, Presco demonstrates rare resilience—growing profits while aggressively deleveraging in a tough macro environment. The question: Does this balance sheet strength and upcoming capacity expansion justify current valuation, or has the market already priced in the Saro acquisition upside?