GHANA – Benso Oil Palm, the main producer of palm oil in Ghana has reported a net profit of US$14.1 million (160.3 million cedis) at the end of its fiscal year 2022 against US$8.1M (92.4 million cedis) the previous year, a 73.5% jump, Ecofin Agency has reported.
The financial statement was revealed by Dr. Alfred Braimah, Board Chairman of BOPP PLC while presenting the 2022 annual report and financial statement to shareholders at the company’s annual general meeting held in Takoradi.
According to the company, the growth trajectory achieved is a reflection of prudent risk management systems, efficient policies, and programs implemented by management under the Board of Directors’ oversight.
Ghana is the 3rd producer of palm oil behind Nigeria and Côte d’Ivoire. Despite this rank, the industry has strong development potential in the coming years with a favorable climate and private investment.
Founded in 1976, Benso Oil Palm mainly operates in the cultivation of oil palms, the processing of fresh fruit bunches into crude palm oil, and the production of palm kernel oil for resale and export.
As one of the oldest agricultural firms listed on the Ghana Stock Exchange, Benso has established itself as a reliable source of high-quality palm oil products with a vertically integrated processing facility that provides end-to-end service and the highest product quality on the market.
Dr. Alfred reported that among the key drivers of the sterling performance include a 20 percent growth in the world market trading prices of crude palm oil and the 30% depreciation of the value of the cedi against the dollar, adding that revenue growth represents 59 percent for 2022 against the prior year.
The board, he mentioned, after reviewing the 2022 full-year performance approved an accumulative dividend payout of GH¢2.0743 (US$0.18) per share, which represents 45 percent of profit after tax and a 95 percent increase in dividends per share payout in 2022 against 2021.
Overall, this situation made it possible to offset the effects related to the weight of taxes, which more than doubled to 24.6 million cedis (US$2 million), as well as the respective increases of 53% and 25% in administrative expenses and sales respectively.
Additionally, Dr. Braimah attributed the success to improved efficiencies in agronomy and palm oil mill management in addition to prudent cost management.
The company, according to him, processed a total of 124,769 metric tonnes of fresh fruit bunches in 2022, of which it purchased 48,807 metric tonnes from outgrower and smallholder farmers in the catchment valued at GH¢53 million (US$4.6M).
From the results, Benso Oil Palm prides itself on contributing to the economic empowerment of these farmers and their households and communities.
Dr. Alfred further revealed that the company has continued to retain the enviable Roundtable on Sustainable Palm Oil (RPSO) certification status and remains a model oil palm plantation for best management practices in Ghana and Africa.
The company, he assured, will continue building on its tested resilience strategies to navigate the economic downturn and ensure profitability, business continuity, and sustainability.