Benso Oil Palm Plantation PLC (BOPP) recorded a slight decline in revenue for the year ended December 31, 2024, amid domestic and global economic headwinds, according to its latest annual report.
Revenue fell by 1% to 346.9 million Ghana cedis (GHC), down from GHC351.6 million in 2023, while profit after tax dropped 7% to GHC95.3 million.
The company attributed the downturn to lower crop yields caused by adverse weather, higher labor costs, and increased prices for raw materials such as fresh fruit bunches.
Despite these challenges, BOPP maintained a stable financial position, with retained earnings growing 5% to GHC305.1 million. Capital expenditure fell sharply by 43% to GHC30.9 million, reflecting reduced investment in infrastructure compared to the previous year. The board proposed a total dividend payout of GHC2.14 per share, a 7% decrease from 2023, with shareholders set to receive payments by July 10, 2025, pending approval at the Annual General Meeting.
Key operational metrics underscored the impact of weather-related disruptions. Total palm fruit processed dropped 17% to 121,787 metric tons, while purchases from smallholder farmers declined 21%. However, the commissioning of a new crude palm kernel oil plant helped offset some volume losses. The company also emphasized progress in sustainability, retaining its Roundtable on Sustainable Palm Oil (RSPO) certification and ranking 23rd in Ghana’s Club 100 Best Companies list.
Corporate governance remained a focus, with the Audit and Risk Committee conducting six meetings to review financial controls and risk management. A new director, Baba Abdullah Issah, joined the board in June 2024, bringing three decades of financial consulting experience. Meanwhile, CSR initiatives saw GHC1.6 million allocated to education, healthcare, and community infrastructure, including scholarships for 46 students and construction of health facilities.
Looking ahead, BOPP acknowledged persistent risks such as inflation, currency volatility, and geopolitical uncertainty but expressed confidence in its cost management and technology adoption strategies. The company plans to expand smallholder partnerships, with over 2,000 farmers targeted for support under the Outgrower Value Chain Fund by 2027.
BOPP’s five-year financial summary reveals steady growth since 2020, with revenue nearly tripling over the period. However, 2024 marked a departure from previous years’ upward trajectory, highlighting the vulnerability of agribusinesses to climatic and macroeconomic shocks. As global palm oil demand fluctuates, the company’s ability to balance operational efficiency with sustainable practices will likely determine its resilience in an increasingly volatile market.
