Adade and Ada-Okungbowa Greener Journal of Agricultural Sciences Vol. 9(3), pp. 268-277, 2019 ISSN: 2276-7770 Copyright ©2019, the copyright of this article is retained by the author(s) DOI Link: http://doi.org/10.15580/GJAS.2019.3.053019104 http://gjournals.org/GJAS Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and the Okomu Oil Palm Company PLC 1Adade, B.F., 2Ada-Okungbowa, C.I. 1 Cambridge International Advanced Level Programme, Word of Faith Schools, G.R.A, Benin City, Nigeria 2 Department of Agricultural Economics and Extension Services, University of Benin, Benin City ARTICLE INFO ABSTRACT Article No.: 053019104 Type: Research DOI: 10.15580/GJAS.2019.3.053019104 Agribusinesses are known to be drivers of economic development in developing nations. Yet little research has been carried out to examine the historical performance (productivity and financial) of oil palm nucleus estates in Nigeria. This study examines how publicly quoted oil palm companies in Nigeria performed over the period, 2011 to 2016. Several indicators of company success (including productivity measures, financial ratios and balance sheet/income statement items) were considered. The data were analyzed using descriptive and inferential statistics (to compare the performance of the two companies). DuPont analysis was also carried out. The study found that both companies performed well in terms of financial ratios related to profitability, liquidity, market, and creditworthiness. The DuPont analysis showed that the return on equity for Presco was mainly due to higher net profit margin while that of Okomu was due to higher total asset turnover; weakness of Presco in the inability to use its assets to generate sales was made up for by higher use of debt in its capital structure. Therefore, it is recommended that Okomu and Presco PLC should work on their profit margin and debt levels respectively to boost return on equity. The Nigerian public should also invest in both companies since they are performing well. Submitted: 30/05/2019 Accepted: 04/06/2019 Published: 28/07/2019 *Corresponding Author Adade B.F. E-mail: fb_adade@ yahoo.com Keywords: Agricultural ventures; Presco; Okomu; Oil Palm; DuPont analysis Return to Content View [Full Article – PDF] [Full Article – HTML] [Full Article – EPUB] Post-Publication Peer-review Rundown View/get involved, click [Peer-review] REFERENCES Adesiyan, O. F. (2015). The performance of the quoted agro-allied industries in Nigeria, Research Journal of Finance and Accounting, 6(9), 200-215. Agarwal, S., Erramilli, K.M. & Chekitan, S. D. (2003). Market orientation and performance in service firms: Role of innovation, The Journal of Science,and Marketing, 17 (1) 18-75. Alabi, R.A & Mafimisebi, T.E (2004). Increasing private participation in agriculture through privatization. A paper presented at the farm management association of Nigeria conference, Abuja, Nigeria, 19-21 Oct. Ayinde, A.I, Ayanwale, S.O.A, Shittu, A.M, & Kareem, O. R. (2013). Analysis of the performance of agro-based companies in the Nigerian stock exchange, Journal of Agribusiness in Developing and Emerging Economies, 3 (2), 119-130. Berryl, A.J., Broadbent, J. & Otley, D. (2005). Management control: Theories, issues and performances. New York; Palgrave, Macmillan. Boyd, S., Boland, M., Dhuyvetter, K. & Barton, D. (2007). Determinants of return on equity in U.S. local farm supply and grain marketing cooperatives. Journal of Agricultural and Applied Economics, 39(1), 201-210. Cleary, S. (1999). The relationship between firm investment and financial status. The Journal of Finance, 54 (2), 673-692. Enlow, J. S. (2012). An examination of corporate agribusiness financial performance: How agribusinesses perform over time and under various conditions, Being Thesis submitted to College of Agriculture, Food and Environment, University of Kentucky (Unpublished). Gittinger, J.P. (1984). Economic analysis of agricultural projects. 2nd Edition, The Johns Hopkins University Press, Baltimore Hansen, S.G. & Wernerfelt, B. (1989). Determinants of firm performance: The relative importance of economic and organizational factors. Strategic Management Journal, 10(5), 399-441. Johnson, R. & Soenen, L. (2003). Indicators of successful companies. European Management Journal, 21, 364-369. Katz, J.P. (1997). Managerial behaviour and strategy choices in agribusiness cooperatives. Agribusiness, 13(5), 483-495. Katchova, L.A. & Enlow, J.S. (2013). Financial performance of publicly-traded agribusiness. Agricultural Finance Review, 73 (2013), 58-73. Marc, M., Peljhan, D., Penikvar, N., Sobota, A., & Tekavic, M.(2010). Performance measurement in large Slovenian Companies: An assessment of progress, 2010 EABR and ETLC conference paper. Mishra, .K., Haris, J.M, Erickson, K.W., Hallahan, C., & Detre, J.D.(2012). Drivers of agricultural profitability in the USA: An application of the DuPont Expansion Method. Agricultural Finance Review, 72(3), 325-340. Melvin, J., Boehlje, M., Dobbins, C., & Gray, A. (2004). The Du Pont Profitability analysis model: an application and evaluation of an e-learning tool. Agricultural Finance Review, 64(1), 75-89. Nehring, R., Gillespie, J., Katchova, L.A., Hallahan, C., Harris, M.J. & Erickson, K. (2015). What is driving U.S. broiler farm profitability? International Food and Agribusiness Management Review, 18(A), 55-78. Olomola, A.S (2001). Strategies and impact of agro-allied parastatals reform in Nigeria. Agricultural Economics, 24 (2), 127-133. The Presco PLC Annual reports and accounts, 2016. The Okomu Oil Palm Company Annual Reports and Accounts, 2016. Upper, J.L. (1979). Finance for project analysis. Washington, D.C., Economic Development Institute, World Bank. Wells, L.T. and Warren, V.E (1979). Developing Country Investors in Indonesia. Bull Indonesian Economic Study, 15, 69-84. Cite this Article: Adade, BF; Ada-Okungbowa, CI (2019). Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and the Okomu Oil Palm Company PLC. Greener Journal of Agricultural Sciences 9(3): 268-277, http://doi.org/10.15580/GJAS.2019.3.053019104.