Stronger Naira Takes Toll on Presco’s Performance in 2026, Q3 Earnings Declines by 29%
Despite recording a slight growth in revenue, the profit after tax of Presco Plc fell by 29% to N78.6 billion ($58 million) in year-to-date Q3 2026 from N110.8 billion in the same period in 2025, on account of provisions for exchange rate loss.
In the Unaudited Interim Financial Statements filed at the Nigerian Exchange Group (NGX) Friday, the company made a provision of N32.6 billion as loss from unrealized foreign currency operations, a 185% Increase from the N11.4 billion the same period in 2025. Presco’s revenue stayed almost flat at N276.5 billion in 2025 (N274.5 billion).
An unrealised foreign exchange translation difference is a documented gain or loss arising from the revaluation of a foreign exchange position at the market exchange rate on the reporting date of the company’s balance sheet. This is known as “marked-to-market” valuation method in accounting or finance.
In the last one year, naira has strengthened relative to the dollar in a development that has made transactions conducted in the dollar to translate into a lower naira value. This implies that unrealized dollar transactions or deposits in 2025 would be less in value (in naira) in the same period in 2026. Information obtained from the website of the Central Bank of Nigeria (CBN) shows that the United States dollar exchanged for between N1,484 and N1,529 in September 2025 as against N1,320 and N1,350 in the same period in 2025.
Presco is a fully integrated agro-processing business specializing in the cultivation of palm oil and extracting it into crude products, with oil plantations in Nigeria and Ghana. Sales of crude palm oil accounts for over 98% of its revenue with by-products from milling operations as well as sales of fresh fruit bunches constituting the rest.
