Key Points
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Presco interim dividend declared despite ongoing rights issue.
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Shareholders to benefit from the company’s consistent earnings.
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Presco interim dividend reflects balance between growth and returns.
This week, Presco Plc will pay its shareholders an interim dividend even though it is still working on a rights issue. This shows that the company has a lot of cash flow and is making more money after taxes. The board approved an interim dividend of N10 per 50k share after a great third-quarter earnings report. Investors who were registered as of November 7, 2025, will get the dividend on November 21.
The business said that qualifying shareholders will get their dividends electronically. At the end of trading last Friday, Presco’s 1 billion shares were worth N1.45 trillion, which is a little less than the stock’s 52-week high.
The Presco interim dividend is a reward for good earnings
Presco’s unaudited financials for the first nine months of 2025 showed that its post-tax profit rose 114% year over year, going from N51.765 billion in the same period of 2024 to N110.786 billion. Earnings per share also rose sharply, going from N51.77 to N110.79. Analysts say that the interim dividend shows confidence in the company’s ability to pay its bills and its ability to make money consistently. However, they also warn that it could raise costs in later quarters.
The gross margin went up by 1.7 percentage points to 73.6 percent, but the operating costs went up by 88 percent from last year. Gains from other income, which rose by 134.4 percent, helped EBIT margins rise by 2.2 percentage points to 60.5 percent. This shows that the company can still make money even when costs are high.
The rights issue goes along with the interim dividend
Presco started a rights issue of 166,666,667 common shares at N1,420 per share. For every six shares held as of October 13, 2025, one new share was offered. The offer started on November 12 and will end on December 2. It gives current shareholders a chance to buy more shares and help Presco’s long-term growth plans.
The money from the rights issue will be used to buy Greenfield and Brownfield properties and to expand the company’s factories, which will help it become the leader in the edible oil sector in the region and increase its production capacity.
Strategy is based on revenue and growth in the region
Revenue rose by 113.5% year over year to N274.5 billion, thanks to strong sales in Nigeria, which rose by 53.2% to N197.1 billion, thanks to higher crude palm oil prices and strong sales volumes. The merger of Presco’s Ghanaian subsidiary brought in an extra N69.5 billion, which improved the overall results.
The cost of sales went up 100.7 percent to N72.4 billion. This was due to both the consolidation of GOPDC and a plan to make more products during busy times to meet demand during slow times. Analysts at CardinalStone Securities Limited said that the company’s strong sales and other income gains made up for its high production and financing costs. This means that the company can keep paying dividends while it works on its growth plans.
