The Benso Oil Palm Plantation (BOPP) PLC in 2022 recorded substantial growth in its business and made huge profits in the process at the end of the 2022 financial year.
The growth trajectory achieved by the company reflected prudent risk management systems, efficient policies and programmes implemented by Management under the oversight of the Board of Directors.
Dr. Alfred Braimah, the Board Chairman presenting the 2022 Annual Report and Financial statements to shareholders at the annual general meeting held in Takoradi, said the company recorded revenue growth of 59 per cent in 2022 against the prior year.
The company also managed its costs prudently, which resulted in a growth in profit after tax of 73.6 per cent.
Dr. Braimah reported that key drivers of the sterling performance include a 20 percent growth in the world market trading prices of crude palm oil and prudent cost management including the review of stock cover policies for major materials such as fertilizer to mitigate the impact of the cedi depreciation despite the global supply shortages, high input prices and inflation.
Dr. Braimah noted that BOPP recorded a 70.3 per cent increase in operating profit and 73.5 percent in profit after tax, that is GHS160.354million in 2022 against GHS 92.423million the previous year.
The Board Chairman explained that it was also attributable to improved efficiencies in agronomy and palm oil mill management in addition to prudent cost management.
In all, the company processed a total of 124,769 metric tons of fresh fruit bunches in 2022 out of which it bought 48,807 metric tons from out-growers and smallholder farmers in the catchment area valued at GHS53 million, thereby contributing to the economic empowerment of these farmers and their households and communities.
Adum Smallholder Oil Palm Plantation Project
Dr. Braimah disclosed that the Adum Smallholder Oil Palm Plantation Project, which was started by the Company in 2019, has just started producing certified Fresh Fruit Bunches. “From this project 633 hectares are coming into maturity,” he disclosed.
The Board, after reviewing the 2022 full year performance recommended for shareholders’ approval an accumulative dividend payout of GHC2.0743 per share which represented 45 percent of profit after tax and 95 percent increase in dividends per share payout in 2022 against 2021.
Dr. Braimah stated that the company continued to keep the enviable roundtable on sustainable palm oil certification status and still is a model oil palm plantation for Best Management Practices in Ghana and Africa.
On Corporate Social Responsibility, BOPP spent GHS 1.6 million on projects such as construction of Water Closet toilet facilities, Housing facilities and road maintenance, Tertiary Educational Scholarships for deserving students from catchment communities and other worthy Community projects.
The company, Dr. Braimah said, would continue to build on its tested resilience strategies to navigate through the economic downturn to ensure profitability, business continuity and sustainability.
Meanwhile, some shareholders shared their joy at the impressive year-on-year progress of the business and expressed their anticipation for the same or better performance in the coming years.
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