Okomu Oil Palm Q1 PAT up 80% to 9.5bn

Okomu Oil Palm has reported an 80% growth in its profit after tax to 9.5 billion naira for the first quarter of this year, with a turnover of 20.5 billion naira. Graham Hefe, the managing director of the company, recently appeared on CNBC Africa to discuss the key drivers behind the company's impressive Q1 results. The main factor fueling the significant increase in profit has been the surge in crude palm oil prices, which have been steadily rising since last year. Hefe highlighted that the company is directly impacted by global market prices and anticipates that the trend will continue in the near future. However, he also acknowledged that the local market's ability to sustain such price increases may pose a challenge in the long run, especially in terms of consumer purchasing power. Despite the potential hurdles, Okomu Oil Palm is focusing on cost-cutting measures and operational efficiencies to navigate the current economic landscape. The company has implemented strategies like utilizing biomass for power generation and optimizing local energy sources to reduce reliance on expensive fuel alternatives. Hefe remains cautiously optimistic about the company's outlook but is closely monitoring inflationary pressures and external factors that could impact their performance in the upcoming quarters.