Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and the Okomu Oil Palm Company PLC

    Adade and Ada-Okungbowa

    Greener Journal of Agricultural Sciences

    Vol. 9(3), pp. 268-277, 2019

    ISSN: 2276-7770

    Copyright ©2019, the copyright of this article is retained by the author(s)

    DOI Link: https://doi.org/10.15580/GJAS.2019.3.053019104

    https://gjournals.org/GJAS

     

     

    Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and the Okomu Oil Palm Company PLC

     

    1Adade, B.F., 2Ada-Okungbowa, C.I.

     

    1 Cambridge International Advanced Level Programme, Word ofFaith Schools, G.R.A, Benin City, Nigeria

    2 Departmentof Agricultural Economics and Extension Services, University of Benin, BeninCity

                                                                                               

    ARTICLE INFO

    ABSTRACT

     

    Article No.: 053019104

    Type: Research

    DOI: 10.15580/GJAS.2019.3.053019104

     

     

    Agribusinesses are known to be drivers of economic development in developing nations. Yet little research has been carried out to examine the historical performance (productivity and financial) of oil palm nucleus estates in Nigeria.  This study examines how publicly quoted oil palm companies in Nigeria performed over the period, 2011 to 2016.  Several indicators of company success (including productivity measures, financial ratios and balance sheet/income statement items) were considered. The data were analyzed using descriptive and inferential statistics (to compare the performance of the two companies). DuPont analysis was also carried out. The study found that both companies performed well in terms of financial ratios related to profitability, liquidity, market, and creditworthiness.  The DuPont analysis showed that the return on equity for Presco was mainly due to higher net profit margin while that of Okomu was due to higher total asset turnover; weakness of Presco in the inability to use its assets to generate sales was made up for by higher use of debt in its capital structure. Therefore, it is recommended that Okomu and Presco PLC should work on their profit margin and debt levels respectively to boost return on equity. The Nigerian public should also invest in both companies since they are performing well.

     

    Submitted: 30/05/2019

    Accepted:  04/06/2019

    Published: 28/07/2019

     

    *Corresponding Author

    Adade B.F.

    E-mail: fb_adade@  yahoo.com

     

    Keywords:

    Agricultural ventures; Presco; Okomu; Oil Palm; DuPont analysis

     

     

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    Cite this Article: Adade, BF; Ada-Okungbowa, CI (2019). Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and the Okomu Oil Palm Company PLC. Greener Journal of Agricultural Sciences 9(3): 268-277, https://doi.org/10.15580/GJAS.2019.3.053019104.

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