Shareholders of Presco approve N1.5b dividend

• Firm posts N15.7b turnover in 2016

For the year ended December 31, 2016, shareholders of Presco Plc have approved a dividend of N1.5 billion, amounting to 150 kobo per share. The company had in 2015 rewarded shareholders with N1billion, indicating 100kobo per share.

Turnover also increased from N10.4 billion recorded in 2015 to N15.7 billion in 2016 while profit after tax was N21.7 billion, from N2.4 billion recorded in 2015 “after accounting for changes in fair value of biological assets”.

The company’s profit before tax also increased from N4.2 billion to N31 billion during the year under review.Addressing shareholders during the 24th yearly general meeting held in Edo state on Wednesday, the Chairman of the Board, Pierre Vandebeeck said the company’s host communities development programe continued within the period under review.

Explaining further, Vandebeeck said: “Presco Plc sustained its good operating result yielding a good performance for the 2016 financial year. We achieved a total of Fresh Fruit Bunch (FFB) production of 164,513 tons. Crude Palm Oil produced was 35,555 ton, refined, Bleached and deodorized oil of 28,505 tons and Olein and stearin produced was 10,946 tons”.

Meanwhile, Edo State Governor, Godwin Obaseki has pledged to make more land available to the company as part of measures to support ongoing expansion agenda.
Speaking at the company’s pre-AGM on Tuesday, Obaseki commended the Board and Management for supporting and meeting the demands of host communities.

Despite challenges, Vandebeeck noted that the company kept its promise to focus on efficiencies across all value chain.“ We kept our pledged that we will in 2016, concentrate on efficiencies in the management of operations across our value chain and continued with our planned long term expansion programme that fall under import substitution, forex earnings and own green energy.

“We aim to increase our oil palm plantation hectarage by the planting of additional 4,000 hectares, plant our first rubber trees and pursue completion of our RSPO certification”.

Making reference to research and development, Vandebeeck said the company is at the forefront of new planting material development and has been very successful in increasing the quality of FFB and oil per hectare of plantation, adding that the amount that was spent on research and development in 2016 was N101.4 million (2015:N148.3million.

Speaking on behalf of shareholders, Onitsha Zone Chairman, Bishop Goodluck Akpore, commended the Board and Management of the company for remaining on the path of sustained growth and development despite economic challenges.He urged them to continue to consolidate on their performance and increase shareholders’ value through dividend payout.