Benso Oil Palm Plantation Public Limited Company (PLC), Ghana’s largest palm oil producer, delivered robust financial performance for the nine months ended September 30, 2025, with revenue climbing 15.2 percent and net profit rising 12.5 percent compared to the same period last year.
The company’s unaudited financial statements released to the Ghana Stock Exchange (GSE) show revenue reached 313.8 million cedis, up from 272.4 million cedis in 2024, driven primarily by increased sales to third parties. Net profit for the period stood at 74 million cedis, compared to 65.7 million cedis the previous year, demonstrating sustained profitability despite competitive market conditions in West African agriculture.
The most impressive performance metric was cash generation. Benso produced 66 million cedis in net cash from operating activities, a dramatic surge from just 12.6 million cedis during the same period of 2024. This represents more than a fivefold increase in operational cash flow, signaling the business is converting paper earnings into actual liquidity available for reinvestment and shareholder distributions.
The company’s equity base strengthened during the period, with total equity rising to 349.4 million cedis from 322.6 million cedis. Benso remains predominantly financed by equity, with its income surplus account growing to 347.4 million cedis, providing a stable capital foundation for future expansion initiatives.
First quarter results released in May 2025 showed revenue surging to 120.68 million cedis, representing a 30 percent increase compared to 93.16 million cedis in the same period of 2024. Growth was driven by improved cost management, as cost of sales declined by 2 percent to 69.86 million cedis, propelling gross profit to 50.82 million cedis, more than double the 22.02 million cedis recorded in 2024.
Operating profit soared to 42.29 million cedis during the first quarter, up from 15.12 million cedis in 2024, despite a slight rise in administrative expenses to 9.48 million cedis. Net profit before tax reached 42.38 million cedis, a 154 percent year over year increase, though tax expenses rose to 6.24 million cedis due to higher profitability levels.
The second quarter maintained momentum, with revenue for the six months ended June 30, 2025 reaching 243.589 million cedis, up from 188.729 million cedis in the corresponding period of 2024. Net profit for the half year totalled 63.749 million cedis, a significant increase from 39.892 million cedis, while basic and diluted earnings per share reached 1.8319 cedis compared to 1.1463 cedis.
Total assets increased to 467.303 million cedis from 420.285 million cedis during the half year period. The expansion was primarily driven by growth in property, plant, and equipment alongside increased biological assets representing maturing palm plantations. Total liabilities stood at 126.089 million cedis compared to 123.564 million cedis, while equity grew to 339.214 million cedis from 296.721 million cedis.
Despite higher cash dividend payments in 2025, the dividend declared from current period profits was 31.6 million cedis, lower than the previous year’s 35.1 million cedis, allowing the company to retain more earnings for reinvestment in plantation expansion and processing capacity enhancements.
Benso declared an interim dividend of 1.0627 cedis per share in November 2025, following a final dividend declaration of 0.9085 cedis per share in May 2025. The combined distributions reflect management’s confidence in sustained profitability while balancing the need to fund capital expenditures critical to long term growth.
The company’s long term receivables jumped significantly during the period, a development management will need to monitor for collectability given extended payment terms can tie up working capital. Other income fell to 4 million cedis from 7.3 million cedis, while finance income decreased to 2.4 million cedis from 6.7 million cedis, suggesting lower income from non core operations possibly reflecting reduced cash balances deployed for operational purposes.
Benso Oil Palm Plantation, incorporated on January 22, 1976, operates over 5,000 hectares of oil palm plantations at the Adum Banso Estate located 42 kilometres north of Takoradi in Ghana’s Western Region. The company produces refined palm oil products including RBD (Refined, Bleached, and Deodorized) Palm Oil, RBD Palm Olein, and vegetable oils, controlling a significant share of the West African market.
The company is a subsidiary of Wilmar Africa Limited, with Wilmar International Limited, listed on the Singapore Stock Exchange, serving as the ultimate holding company. This corporate structure provides access to global best practices in palm oil cultivation and processing while maintaining strong local operational autonomy responsive to Ghanaian market dynamics.
Benso engages in extensive outgrower and smallholder schemes, contributing significantly to socioeconomic conditions and livelihoods of farmers in its catchment areas within the Western and Central Regions. The company invested 65 million cedis in smallholder and outgrower operations during 2024, demonstrating commitment to economic empowerment for farming communities dependent on palm oil cultivation for household income.
Ghana currently supplies only 70 percent of national palm oil demand domestically, importing approximately 200,000 metric tonnes annually at a cost of 200 million dollars. This import dependency represents both a challenge and opportunity for domestic producers like Benso positioned to expand capacity and capture market share currently served by foreign suppliers.
The government announced plans to develop 50,000 hectares of industrial palm oil plantations, with the first phase targeting 20,000 hectares requiring 100 million dollars in private investment. Starting July 14, 2025, the Tree Crops Development Authority began requiring all palm oil importers to register and obtain official permits, a move designed to stabilize Ghana’s domestic market and protect local producers from unfair competition caused by unregulated imports.
These policy developments create a more favorable operating environment for established producers like Benso, which possess technical expertise, processing infrastructure, and distribution networks necessary to scale production efficiently. Import regulations reduce competitive pressure from cheaper foreign palm oil, potentially supporting higher domestic prices that improve profitability margins for local manufacturers.
Benso achieved significant recognition during 2024, including ranking 23rd in the Ghana Club 100 Best Companies awards, winning second runner up for Best Corporate Social Responsibility (CSR) Company, and being recognised as the second best agribusiness in Ghana. The company maintains Roundtable on Sustainable Palm Oil (RSPO) certification status, demonstrating adherence to environmental and social standards increasingly demanded by international buyers.
Community development initiatives expanded substantially during 2024. Benso provided a three bedroom flat for nurses in the Benso community, made donations for construction of the Joint Operation Center Regional Headquarters for the Ghana Police Service Western Region, and provided accommodation for soldiers stationed at 2BN. The company increased tertiary scholarships from five to eleven, benefiting nine communities and 46 students with a total of 512,000 cedis.
Employee benefits expanded to include contract workers, Benso Oil Palm Plantation school teachers, and police officers stationed on the company’s estate, totalling 2 million cedis for 191 students. These investments in human capital development strengthen community relations while building goodwill crucial for securing land access and maintaining peaceful operations in rural areas where the company operates.
Benso’s share price performance reflected investor confidence in the company’s operational trajectory. Shares closed at 55.82 cedis on December 16, 2025, representing a 121 percent gain from the opening price of 25.26 cedis at the beginning of 2025, ranking the stock 10th on the GSE in terms of year to date performance. By January 16, 2026, the share price had surged further to 58.61 cedis.
The company’s market capitalisation reached approximately 2.04 billion cedis by mid January 2026, representing about 1.17 percent of the Ghana Stock Exchange equity market. This valuation reflects investor recognition of Benso’s market position, operational efficiency, and growth potential within Ghana’s agricultural sector amid improving macroeconomic conditions.
Trading liquidity remained relatively modest, with Benso ranking 26th among most traded stocks on the GSE over the three month period ending December 17, 2025. The company traded a total volume of 15,127 shares valued at 636,109 cedis during this period, with an average of 240 traded shares per session, suggesting concentrated institutional ownership with limited free float available for daily trading.
Net sales breakdown by product family shows crude palm oil accounting for 91.7 percent of revenues, while palm kernel oil represents 8.3 percent. This product concentration creates both efficiency advantages through specialization and vulnerability to palm oil price fluctuations, though kernel oil provides partial diversification buffering against adverse price movements in the primary product line.
The company employs 471 people across plantation, processing, and administrative functions. This workforce manages cultivation activities spanning thousands of hectares while operating milling and refining facilities that transform fresh fruit bunches into finished palm oil products ready for wholesale and retail distribution throughout West Africa.
Looking ahead, Benso faces opportunities and challenges shaped by global palm oil dynamics, domestic policy developments, and climate factors affecting yield patterns. International palm oil prices have declined from peak levels reached during 2024, potentially pressuring profit margins unless offset by cost reductions or market share gains.
Climate variability poses ongoing risks to plantation productivity, with rainfall patterns and temperature fluctuations directly impacting fruit bunch formation and oil extraction rates. Management’s ability to implement precision agriculture techniques, deploy resistant cultivars, and maintain optimal nutrient regimens will prove critical to sustaining yield improvements supporting revenue growth targets.
Continued investment in biological assets remains essential for long term competitiveness. Palm trees require approximately three years before initial harvest and reach peak productivity between years eight and fifteen, necessitating sustained capital allocation to replanting programs ensuring continuous production from mature stands while new plantings mature toward commercial viability.
The combination of strong operational performance, improving market conditions, supportive government policies, and strategic positioning within a growing regional market positions Benso Oil Palm Plantation favorably for sustained value creation. However, execution risks around cost management, yield optimization, and working capital discipline require ongoing management attention to deliver returns justifying current equity valuations.
