Benso Oil Palm Plantation PLC (BOPP) reported a 47% decline in its first-quarter profit for 2026. The Ghana Stock Exchange-listed agribusiness firm posted a total comprehensive income of GHS 19.1 million for the three months ending March 31, 2026.
This figure is significantly lower than the GHS 36.1 million recorded in the same period of 2025. Lower revenue and increased production costs were the main reasons for this reduction in earnings. BOPP's revenue decreased to GHS 104.4 million from GHS 120.7 million, representing a 13.5% drop. At the same time, the cost of sales increased to GHS 70.0 million, up from GHS 67.8 million in the previous year.
This financial performance highlights the challenging conditions faced by agribusinesses in Ghana. Companies battle rising operational expenses, including raw material and staff costs. This trend puts pressure on profit margins across the agricultural sector. The Ghanaian economy continues to grapple with inflation and exchange rate volatility, impacting businesses' input costs and pricing strategies. Such economic pressures affect companies' ability to maintain profitability even with stable commodity prices.
BOPP described its first-quarter performance as strong through higher sales volumes and stable crude palm oil prices. The company stated that the decline in net profit occurred because lower Q1 2025 results were strengthened by gains from cedi appreciation. This indicates that currency movements played a significant role in previous year statistics. The company remains focused on managing costs at all levels and improving its capital structure. BOPP aims to maintain strong harvests and future yields through good plantation practices.
Going forward, investors and market analysts will closely monitor BOPP's ability to control its operating costs. The domestic macroeconomic environment and global geopolitical tensions will also influence the company's performance. Decision-makers within the company will need to balance cost-cutting measures with necessary investments. This includes capital expenditure into property, plant, and equipment, which rose to GHS 19.0 million in Q1 2026 from GHS 12.8 million in Q1 2025. The company's strategy around its capital structure, aiming for optimal levels of equity and debt, will be key to its resilience.
Benso Oil Palm's operating profit fell to GHS 22.5 million from GHS 42.3 million in Q1 2025. Administrative expenses also increased to GHS 12.2 million from GHS 11.5 million. Furthermore, other income decreased sharply to GHS 291,000 from GHS 942,000. These factors combined led to basic and diluted earnings per share falling to GHS 0.5486 from GHS 1.0384. Despite the profit decline, the company generated GHS 35.4 million in net cash from operating activities, compared to GHS 28.8 million in the prior year. This shows stronger cash generation from its core business operations.
Crude palm oil sales remained the primary revenue driver, though they decreased to GHS 95.6 million from GHS 108.3 million. Palm kernel oil sales also fell to GHS 7.8 million from GHS 11.6 million. Key cost increases included fresh fruit bunch material costs, which rose to GHS 32.1 million from GHS 29.3 million. Staff costs also saw an increase to GHS 9.0 million from GHS 8.0 million. Total assets marginally increased to GHS 429.8 million from GHS 428.4 million. However, current assets declined to GHS 148.3 million from GHS 203.6 million, with cash and bank balances falling sharply to GHS 16.2 million from GHS 43.8 million. Dividend payments to shareholders increased significantly to GHS 29.0 million from GHS 6.4 million, contributing to a net decrease in cash and cash equivalents by GHS 12.7 million.