By Juliet Aguiar DUGBARTEY, Takoradi
Benso Oil Palm Plantation (BOPP) PLC has shown notable growth and profitability in recent years. The company attributes its strong performance to robust corporate governance, effective risk management systems and strategic investments.
Financial and operating performance
During the company’s Annual General Meeting (AGM) in Takoradi, Dr. Alfred Mahamadu Braimah, the Board Chairman of BOPP, reported that Profit before Income Tax increased by 7 percent to GH¢114.8million in 2024, up from GH¢123.8million in the previous year. Retained earnings also saw a 5 percent rise, reaching GH¢305.1million compared to GH¢289.9million in 2023.
However, revenue experienced a slight decline of about 1 percent year-on-year, primarily due to lower crop yield arising from the replanting of some older palms.
Dr. Braimah explained that the influx of cheaper, illegally imported finished oil products compelled local producers to sell Crude Palm Oil (CPO) below global market rates, significantly impacting BOPP’s revenue.
He said despite a 21 percent reduction in sales volumes, the commissioning of a new Crude Palm Kernel Oil (CPKO) plant helped cushion some of the revenue losses by increasing CPKO output.
Also, he said total palm fruits processed in 2024 amounted to 121,787 metric tonnes, a 17 percent drop from the previous year. This reduction was mainly due to lower output from nucleus and independent smallholder plantations, partly attributed to the seasonal fluctuations in crop production and the replanting of 500 hectares in 2021 and 601 hectares of smallholder plantations in 2023.
According to him, BOPP purchased 46,085 metric tonnes of Fresh Fruit Bunches (FFB) from schemed and independent smallholder farmers in the Western and Central Regions at a total cost of GH¢65million. Meanwhile, the price of Outside Purchased Fruits (OPF) increased by 21 percent, from GH¢1,560 per metric tonne in 2023 to GH¢1,899 in 2024.
“The sustained performance trajectory of the company reflects our focus on efficient policies and robust risk management systems,” Dr. Braimah stated.
Corporate social responsibility and recognition
BOPP’s corporate social responsibility (CSR) expenditure amounted to GH¢1.6million in 2024. These CSR initiatives focused on education, health and sanitation, security, infrastructure and the economic empowerment of smallholders and independent farmers. Additionally, GH¢2million was spent on scholarships for 191 children of employees and those from the catchment area communities under the company’s educational scholarship scheme.
In recognition of its dedicated efforts, BOPP was named the 2nd runner-up for Best CSR Company in Ghana and secured the 2nd Best Agribusiness award in 2024.
Outlook
Looking ahead, Dr. Braimah emphasised BOPP’s commitment to collaborating with government agencies to curb the influx of illegal palm oil imports.
He concluded: “This issue affects the operations of our major customers – the downstream manufacturing companies as well as national tax revenues.”
