Benso Oil Palm Plantation PLC (BOPP) has experienced remarkable profitability growth over the past five years, as a result of sound corporate governance, operational efficiencies, prudent cost management and favourable global commodity prices.
Samuel Avaala, General Manager-BOPP, highlighted these during a recent ‘Facts Behind the Figures’ session organised by the Ghana Stock Exchange (GSE).
“There is no magic behind these numbers, although it may appear so at first glance. When you delve into the figures, you’ll realise that our well-thought-out measures and unwavering commitment to our core values lie at the heart of our success,” the engineer said.
In the first half of 2023, BOPP reported a 16 percent increase in turnover compared to the previous year, reaching GH¢185million. This growth can be attributed to soaring global crude palm oil prices and enhanced crop productivity, from both the nucleus plantation and smallholder and out-grower programmes.
The company has maintained high levels of operational efficiency and continues to improve in this regard, while disciplined cost management has kept unit production costs in check, its General Manager pointed out.
The profit for first-half of 2023 stood at GH¢72million, representing 82 percent of the previous year’s level and 80 percent of the company’s plan. In 2022, the full-year profit reached GH¢160million – a substantial increase from GH¢92million in the previous year, demonstrating a 74 percent growth.
This robust performance is a result of sustained operational efficiencies, strong production volumes and the recovery of world market crude palm oil prices which began in early 2020, Mr. Avaala added.
He announced that the company remains on course to maintain this strong profit trend until end of the year, by leveraging its core competencies in production and capitalising on the bullish trend in world market prices. The company is making strategic investments in plant and machinery, and expanding its out-grower plantations to enhance its operational capacity and raw material base.
Additionally, BOPP is committed to conducting its business in a socially responsible and ecologically sustainable manner, adhering to internationally accepted best practices that deliver sustainable value to stakeholders and shareholders alike.
BOPP kicked-off the year with a share price of GH¢7.65 and has since seen a market-leading 144 percent increase in its valuation, making it the top performer on the GSE in terms of year-to-date performance. The stock has accrued a 21 percent gain in just the past four weeks, ranking it sixth on the GSE.
