Benso Oil Palm Plantation Limited recorded a decline in earnings for the first half of 2026, as lower revenue and weaker profit margins weighed on the company’s financial performance.

For the six months ended June 30, 2026, the company reported revenue of GH¢218.85 million, representing a 10.2% decline from the GH¢243.59 million generated during the same period in 2025.

The company explained that although sales volumes remained strong and pricing was relatively stable, its performance was affected by the appreciation of the Ghana cedi against the US dollar. Benso Oil Palm noted that profitability improved between the first and second quarters of 2026 but remained below the corresponding period in 2025.

Profit Declines as Margins Narrow

Cost of sales declined slightly from GH¢146.86 million to GH¢144.12 million. However, the reduction was not enough to offset the fall in revenue.

Consequently, gross profit decreased by 22.7%, from GH¢96.73 million in the first half of 2025 to GH¢74.73 million in 2026.

The company’s gross profit margin narrowed from approximately 39.7% to 34.1%, showing that Benso Oil Palm earned less gross profit from every cedi of revenue generated.

Administrative expenses increased by 10.9% to GH¢23.79 million, compared with GH¢21.46 million a year earlier. However, the company recorded other income of GH¢4.09 million, against an expense of GH¢292,000 in the previous period.

Operating profit subsequently declined by 26.6% to GH¢55.03 million, from GH¢74.98 million in 2025. The operating profit margin fell from 30.8% to approximately 25.1%.

Profit before tax also dropped by 27.7%, from GH¢76.31 million to GH¢55.18 million.

After accounting for tax expenses of GH¢8.62 million, Benso Oil Palm reported a net profit of GH¢46.56 million, down 27% from GH¢63.75 million in the corresponding period of 2025.

The company’s net profit margin declined from approximately 26.2% to 21.3%.

Basic and diluted earnings per share fell from GH¢1.8319 to GH¢1.3380.

Crude Palm Oil Remains the Main Revenue Source

Crude palm oil continued to account for most of Benso Oil Palm’s revenue, generating GH¢192.26 million during the period, compared with GH¢212.62 million in 2025.

Revenue from palm kernel oil declined from GH¢25.79 million to GH¢23.16 million, while sales of palm kernel expeller increased from GH¢1.50 million to GH¢1.99 million.

Sales of soap fell significantly from GH¢3.68 million to GH¢1.45 million.

Related parties contributed GH¢206.98 million of total revenue, while sales to third parties amounted to GH¢11.87 million.

Cash Flow Improves Despite Lower Profit

Despite the decline in earnings, the company recorded a significant improvement in operating cash flow.

Net cash generated from operating activities increased from GH¢21.72 million to GH¢65.17 million, representing an increase of about 200%.

Benso Oil Palm spent GH¢6.75 million on property, plant and equipment and invested GH¢11.85 million in long-term receivables. After receiving GH¢590,000 from the sale of property, plant and equipment, net cash used in investing activities amounted to GH¢18.01 million.

The company also paid GH¢29.02 million in dividends to shareholders during the period, compared with GH¢6.47 million in the first half of 2025.

Cash and cash equivalents consequently increased by GH¢18.15 million during the period, ending June 2026 at GH¢47.07 million, almost double the GH¢23.58 million recorded a year earlier.

Assets and Shareholders’ Equity Increase

Benso Oil Palm’s total assets increased by 2.1% to GH¢474.96 million, from GH¢465.30 million in June 2025.

Non-current assets rose to GH¢284.47 million, mainly due to an increase in long-term receivables from GH¢73.26 million to GH¢119.37 million.

However, current assets declined from GH¢222.27 million to GH¢190.49 million, largely because amounts due from related parties fell from GH¢126.23 million to GH¢70.05 million.

Total current liabilities decreased from GH¢126.09 million to GH¢114.11 million. The company reported no separate non-current liability balance in the statement of financial position.

Shareholders’ equity increased by 6.4% to GH¢360.85 million, supported by retained earnings accumulated in the company’s income surplus account.

Outlook

Management said it remains focused on prudent cost management and maintaining sound agronomic practices to support production and future yields.

Although broader economic and geopolitical uncertainties remain, the board said the company’s strong fundamentals, operational resilience and disciplined execution should support sustainable growth and long-term shareholder value.

For investors, the first-half results present a mixed picture. Profitability and margins weakened compared with 2025, but Benso Oil Palm remained profitable, generated stronger operating cash flow, increased its cash balance and maintained a solid equity position.