Mobifoluwa Adesina: Price And Volume Drove Presco’s Revenue Growth

Analyst says strong pricing and expansion into Ghana boosted Presco’s revenue performance in 2025.

Presco Plc’s strong financial performance in 2025 was largely driven by a combination of higher product pricing and increased production volume following strategic expansion into new markets.

Speaking during an interview on ARISE News, investment analyst Mobifoluwa Adesina said the company’s revenue growth reflects a transformational phase rather than routine industry performance.

“If you look at the revenue… it’s more of a transformation year for Presco in 2025,” he said.

Adesina noted that revenue grew significantly during the period, supported by improvements in both pricing and output.

“Price on one side, volume on the other side… these two combined together gave us what we’re seeing in the revenue,” he explained.

According to him, a key driver of volume growth was Presco’s expansion into Ghana, where the company increased its stake in an oil palm business to full ownership.

“They started with about 15%… and increased their stake to 100%… this gives them larger headroom in terms of production,” he said.

He added that the Ghana expansion significantly contributed to the company’s international revenue growth, alongside favourable exchange rate movements.

“We believe… the conversion rate between Ghana cedis and naira… gives some level of increment,” he noted.

Despite the strong revenue performance, Adesina highlighted rising cost pressures, particularly in raw materials, as a key challenge.

“Raw material consumed… jumped by roughly 1000%,” he said, attributing the increase to higher fertiliser costs and supply constraints.

He explained that Nigeria’s dependence on imported fertiliser continues to expose the industry to global price fluctuations.

“Because we import most of the fertiliser… it’s a big issue for the industry players,” he said.

Adesina also pointed to increased maintenance and repair costs, which he linked to recent acquisitions and expansion activities.

“It could be because of the consolidation… trying to repair some of the equipment,” he said.

On financing, he noted that the company’s bond issuance to fund acquisitions has increased its leverage and finance costs.

“They issued a bond… that is putting pressure on finance costs,” he explained.

However, he said the company continues to reward shareholders, highlighting an increase in dividend payouts.

“They’ve shown… a very positive body language to the shareholders,” he said.

Looking ahead, Adesina said Presco’s future performance will depend on how well it manages its expanded asset base and capital structure.

“How they’re able to manage the leverage… and how they’re able to sweat the assets,” he said.

Adesina concluded that while Presco’s growth has been driven by pricing and expansion, sustained performance will depend on efficient asset utilisation and cost management in the coming years.