Money Africa@themoneyafrica
Okomu has opened 2026 by proving that you don't need massive sales growth to deliver massive profit. While revenue stayed relatively flat, the company’s internal cost-cutting has turned it into a high-speed cash machine.
Revenue grew by a modest 1.5% to hit ₦58.95 billion. However, the real win happened in the margins. Okomu slashed its Cost of Sales by 24.5%, dropping it from ₦15.5 billion to ₦11.7 billion. This surgical cost control allowed Net Profit (PAT) to jump to ₦23.6 billion for the quarter.
The balance sheet underwent a massive liquidity transformation. Cash and bank balances skyrocketed from ₦12.9 billion in December to ₦31.8 billion in March. This was driven by ₦37.6 billion in fresh operating cash flow generated in just 90 days, providing a massive buffer for future expansions.
Okomu is doubling down on the Nigerian market. Local sales now account for 93% of total revenue (₦54.79 billion), while exports dropped to ₦4.16 billion. The company is clearly prioritizing high local demand and avoiding the complexities of international shipping in a volatile era.
The company faced a ₦1.24 billion exchange loss, which pushed finance costs up by 56%. However, because the core operation is so profitable, they absorbed this hit effortlessly. With a pre-tax profit of ₦34.1 billion, they can pay their interest obligations 24 times over.
Okomu is currently operating as a high-margin fortress. By cutting production costs and building a ₦31 billion cash reserve, they have de-risked their business while delivering an EPS of ₦24.74 in just one quarter.
