BOPP makes profit of GH¢24.69m in 2020

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.

Meanwhile, in the 2021 financial year, the company would pay a dividend of GH¢36.97 million on Basic and Diluted End Price Share of GH¢2.6558 out of a total profit of GH¢92.41 million representing a 233 percent increase compared to previous year.

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.

Dr Ishmael Yamson, Chairman of the Board of Directors during an Annual General Meeting with stakeholders said the stellar performance in 2021 despite the coronavirus pandemic was because of dedication and prudent measures adopted by the company.

The overall business performance of the company delivered profit after tax of GH¢92.41 million compared with GH¢20.69 million the previous year, representing an improvement of 274 percent to 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 said 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 500hectors 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 scales in production and the cumulative Ghana Cedi depreciation of four percent had a constructive impact on revenue and the cost of sales.

Meanwhile, the company had committed to the human resource and capacity drive through education which continued to be high on the calendar of the company with brilliant but needy students within the communities’ getting scholarships under the tertiary education scholarship scheme.

In 2021, a total of 17 students from four communities benefited from the tertiary education scholarships offered by the company in the catchment area.

The BOPP schools recorded an impressive performance also in the Basic School Certificate Examination.

Dr. Yamson noted the year under review the company paid out GH¢38.9million to smallholder and out grower farmers for the purchase of fruits in the catchment areas thus contributing to the socio-economic enhancement of the livelihood of these farmers.

Also, about GH¢ 1,065,477.69 was spent on Corporate Social Responsibility projects which included the construction of 4-bed capacity male ward for Benso community clinic, 20-Seater WC toilet for Adum Banso community, rehabilitation of 5 Unit Classroom Block for Adum Banso Roman School.

The company through the mandated agency also carried out maintenance and rehabilitation work on Dominase, Amantin, Trebuom, Ayiem Benso and Adum Banso communities.

The BOPP also donated clinical and laboratory equipment to Adum Banso community clinic and the organisation of National and Regional Farmers Day Celebration.

The Company, the Chairman added was successful on the Annual Surveillance Audit of the Roundtable on Sustainable Palm Oil (RSPO) in July 2021 and had since been issued a new certificate.

He said BOPP had become the model of Best Management Practice (BMP) in the oil palm plantation industry in Africa adding, “the recent FT ranking of the 75 fastest growing companies in Africa, BOPP Plc was one of the four companies that made it into the list from Ghana.”

Engineer Samuel Avaala , the General Manager of BOPP said the company had plans for expansion since the regulatory environment was set with the help of the Tree Crops Development Authority.

Mr Avaala said, “we are more than poised to take advantage of the policy environment that has been created to embark on an expansion… it is our strategy to operations within the next five years”.

The Managing Director said with a clear signal from the Authority, another critical milestone would be the win-win engagement with land owners, the assemblies, and traditional authorities to accelerate the expansion drive.

“We can co-create the business environment through plantation agriculture to reduce poverty among the rural communities and promote economic growth”.

The Roundtable on Sustainable Palm Oil certification, he alluded confirmed the company’s compliance with local and international laws on environment, employees’ relations, information flow to shareholders and places a premium on continual improvement.

The Expansion project would also consider environmental impact and assessments, he added.

Source: GNA

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