News in brief:
– Livestock Feeds Plc, Presco Plc, and Okomu Oil Palm recorded strong stock price growth in Q1 2025, reflecting investor confidence in Nigeria’s agribusiness sector.
– In contrast, FTN Cocoa Processors Plc and Ellah Lakes faced financial struggles, highlighting challenges such as exchange rate volatility and inadequate working capital.
Nigeria’s production company, Livestock Feeds Plc, recorded a 78.64% increase in its stock price value in the first quarter (Q1) of 2025, rising from ₦4.87 to ₦8.7. The animal feed manufacturer has been in business for more than 60 years in Nigeria.
In 2024, its stock value had gone from ₦1.85 to over ₦4, and it was the second-most traded in terms of volume among agriculture companies.
Meanwhile, Presco Plc witnessed the second-highest price surge so far in 2025, with its stock going from ₦493 to ₦785, representing an increase of 59.23%. The company reported a full-year pre-tax profit of ₦128 billion for 2024, rising by 156% compared to the preceding year.
Presco had announced plans to complete a new mill at Ato Estate in 2025 as part of its expansion plans for the year.
Okomu Oil Palm, a competitor of Presco, saw a stock value rise of 22.79% in Q1 2025 as its year-to-date (YTD) price went from ₦444 to ₦545.2. The company’s pre-tax profit rose by 58% in 2024, also trailing its rival.
FTN Cocoa Processors Plc recorded the most significant loss of 2025, so far, among agriculture producers. Its stock value fell by 17.24% as the price dropped to ₦1.68 from ₦2.03. The company continues to struggle with exchange losses and inadequate working capital, as it witnessed a loss after tax of ₦10.62 billion in 2024 and its stock price remained largely the same during the year.
Ellah Lakes, which runs palm oil and cassava plantations, saw a 0.98 decline in stock price value after Q1 2025. The company had disclosed no revenue for 2023 and 2024 as its financial challenges continue.
The financial performance of these companies reflects both the opportunities and challenges in Nigeria’s agricultural sector and broader economy.
The strong stock price growth of Livestock Feeds Plc, Presco Plc, and Okomu Oil Palm suggests investor confidence in agribusiness, particularly in poultry feed and palm oil production.
Presco’s massive profit increase and expansion plans highlight the growing demand for agricultural commodities and the potential for agribusinesses to thrive with strategic investments. This aligns with Nigeria’s push for agricultural exports and self-sufficiency, signaling a positive economic outlook for the sector.
On the other hand, FTN Cocoa Processors Plc and Ellah Lakes are struggling with losses, indicating structural challenges, including foreign exchange volatility, inadequate working capital, and weak financial management.
FTN Cocoa’s decline is particularly concerning given Nigeria’s position as a major cocoa producer, suggesting missed export opportunities.
These financial struggles highlight the need for better policy support, investment in value-added processing, and improved financial management in agribusiness. If Nigeria is to fully leverage agriculture as a key economic driver, addressing these challenges will be crucial for sustained sectoral growth and stability.
