Presco Plc Reports Strong Revenue Growth and Profitability in Q1 2026 unaudited financial report

Presco Plc, a leading agro-industrial company in Nigeria, has announced its financial results for the three months ended March 31, 2026. The company showed a positive year-on-year (YoY) growth across key metrics, including revenue, gross profit, and profit before tax.

Revenue and Profit Performance

For the first quarter of 2026, Presco Plc recorded revenue of N100.86 billion, a 7.54% increase from N93.79 billion in the same period in 2025. The increase in revenue was driven primarily by higher sales of crude and refined products.

The company’s gross profit for Q1 2026 stood at N91.29 billion, reflecting a 9.04% increase from N83.72 billion in Q1 2025. This strong growth in gross profit demonstrates Presco’s improved cost management and operational efficiency.

Operating profit before finance costs amounted to N71.64 billion, up by 3.73% compared to N69.07 billion in Q1 2025. However, the slower growth in operating profit relative to revenue and gross profit may indicate the impact of rising operational costs and finance charges.

Presco’s profit before tax (PBT) increased significantly by 18.16%, reaching N69.24 billion in Q1 2026, up from N58.61 billion in the previous year. Despite a higher tax expense, profit for the year grew by 3.53%, amounting to N49.26 billion, compared to N47.58 billion in Q1 2025.

Finance Costs and Finance Income

Presco Plc has made significant strides in reducing its finance costs. Finance costs for Q1 2026 amounted to N7.53 billion, marking a decrease of 28.47% from N10.53 billion in Q1 2025. The reduction in finance costs reflects the company’s efforts to lower interest expenses, likely due to debt repayments or refinancing at lower rates.

Meanwhile, finance income saw an extraordinary increase of 8,451.07%, reaching N5.13 billion in Q1 2026, up from just N59.13 million in the previous year. The substantial rise in finance income is attributed to higher returns from loans and investments.

Balance Sheet and Liquidity

Presco Plc’s total assets as of March 31, 2026, stood at N802.38 billion, representing a decrease of 13.35% from N926.01 billion as of December 31, 2025. The decline in total assets is primarily due to a reduction in current assets, particularly cash and receivables.

The company’s current assets amounted to N353.05 billion, a significant decline of 26.55% from N479.98 billion in Q1 2025. This drop was mainly attributed to a decrease in cash balances, which could potentially impact liquidity in the short term.

Presco’s equity increased by 7.77%, reaching N477.07 billion at the end of Q1 2026, up from N442.75 billion in the previous year. The growth in equity is largely attributable to retained earnings.

Debt Management

The company made substantial progress in managing its debt. Borrowings decreased significantly by 57.06%, to N136.63 billion in Q1 2026, down from N317.30 billion in Q1 2025. This decline reflects Presco’s efforts to repay outstanding loans and reduce leverage.

Cash Flow and Investment

Presco Plc reported a strong cash flow position in Q1 2026. The company generated N62.70 billion in operating cash flow, a positive result despite the decrease in current assets. In contrast, investing activities resulted in a cash outflow of N1.16 billion, largely due to investments in property and equipment.

The company’s financing activities showed a net outflow of N187.46 billion, primarily due to debt repayments.

Earnings Per Share (EPS)

The company reported basic earnings per share (EPS) of N42.22 for Q1 2026, down from N47.58 in the same period in 2025. The decrease in EPS is attributed to the impact of foreign exchange losses and increased finance costs.