By Francis Akinnodi
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The management of Okitipupa Oil Palm PLC have stated that the firm have changed its business strategy to drive growth and profitability, saying it has achieved highest revenue in twelve years.
Chairman, Board of Directors of Okitipupa Oil Palm PLC, Mrs. Mobolaji Osomo made this known during the firm’s annual general meeting.
The Hope reports that the firm’s revenue increased by 94.9percent year-on-year, from N281.2million in 2019 to N548.2million in 2020, according to its financial report.
The oil palm maker’s profit after tax grew to N229.8million in 2020 from N3.6million in 2019 as the company bounces back to significant profitability after incurring losses from 2008 to 2018.
According to Osomo, “This is attributed to a change in our business strategy driven by a new agricultural operations model undertaken to reposition the company which is being consolidated in 2021. We’re sure we would produce even far significant results.”
She noted that to sustain the encouraging trends in the organisation, strategies have been developed to completely rescue the company’s plantations from the claws of some unauthorized persons who had been exploiting them for over two years.
“The successful implementation of these strategies will increase the exploitable plantation resources, increase the profits through effective control of cost and also maintain a respectable and sustainable growth.”
Also, Chief Executive Officer, Okitipupa Oil Palm, Mr. Taiwo Adewole told The Hope that the board and management took a very strategic position to reposition the business for profitability.
According to him, the company’s reconstituted cashless policy, adoption of an innovative operational model that allows licensing of plantations and adequate security provided by the Ondo state government have helped Okitipupa Oil Palm significantly reduced its expenditure and multiplies its revenue during the period.
“We have not experienced this kind of result that has enabled us to wipe out losses of over 15 years and return to profitability.”
He added that government’s agricultural policies also supported the company to make a significant profit during the period.
In his goodwill message, Governor of Ondo state, Arakunrin Oluwarotimi Akeredolu expressed his joy that Okitipupa Oil Palm, the state’s heritage has been able to confront its various challenges n the last few decades.
“In spite of the enormous scale of the crisis and impact that Covid-19 is having on businesses globally causing disruptions in investment targets with concomitant economic instability, Okitipupa Oil Palm has been able to cope with some debilitating financial duties and also keep up with other demand.
“The efforts made in the last three years have now paid off with the company returning to great profitability by wiping out the consistent losses of over a decade and still able to pay a significant dividend,” he added.