The Benso Oil Palm Plantation Plc (BOPP), has paid a total dividend of GH¢7.41 million out of a total profit of GH¢24.69 million for the year ending 31 December 2020.
Chairman of the Board of Directors, Dr Ishmael Yamson revealed at the end annual general meeting with stakeholders that the stellar in 2021 despite the coronavirus pandemic was because of dedication and prudent measures adopted by the company.
BOPP is concerned with growing oil palm and processing palm fruits into crude palm oil, the key ingredient used in the downstream refinery and manufacturing of cooking oil and other products for domestic consumption.
The overall business performance of the company delivered a profit after tax of GH¢92.41 million compared with GH¢20.69 million the previous year, representing an improvement of 274 percent from last year’s profit.
The level of profitability was impacted by the 63 percent growth in the trading prices of crude palm oil, 70 percent growth in crude palm kernel oil prices, and nine percent growth in crop production from the Nucleus, Smallholder, and Out-grower, the Chairman added.
The Board Chair added that there was also an improvement in operating efficiencies to contain the growing cost of business amid the COVID-19 pandemic.
The production volume for palm fruits processed during the year under review was 146,326 metric tonnes, representing a nine percent increase over the 2020 production and lauded the loyalty of nucleus and out-growers which helped in the increase in volumes despite the slight reduction in crop from the smallholder plantings as 500 hectors of the total area of 1,650ha was undergoing replanting.
The company purchased 61,753 metric tonnes of fresh fruit bunches at a total cost of GH¢37million from smallholders and out-grower farmers in the catchment areas and the Central Regions with a growth in turnover of 73 percent for the financial year 2021 due to growth in production and significant growth in world prices for crude Palm oil.
The improved operating efficiencies and the general rise of 63 percent and 70 percent of trading Crude Palm Oil and Crude Palm Kernel Oil prices respectively also improved operating profit.
Dr Yamson said the turnover expanded by 73 percent from GH¢123.82 million in prior period to GH¢214.18 million, adding that the combined effects of economies of scale in production and the cumulative Ghana Cedi depreciation of four percent had a constructive impact on revenue and the cost of sales.