By Juliet Aguiar DUGBARTEY, Takoradi
The Benso Oil Palm Plantation (BOPP) PLC has experienced significant expansion and financial success over the past few years. This achievement can be attributed to their solid corporate governance practices, efficient risk management strategies, and well-placed investment decisions.
Financial and operating performance
At the company's Annual General Meeting (AGM) held in Takoradi, Dr. Alfred Mahamadu Braimah, who serves as the Board Chairman of BOPP, stated that the profit before income tax climbed by 7% to reach GH¢114.8 million in 2024, an increase from GH¢123.8 million recorded in the prior year. Additionally, retained earnings experienced a growth of 5%, totaling GH¢305.1 million against GH¢289.9 million documented in 2023.
Nevertheless, revenues saw a minor decrease of approximately 1 percent compared to the previous year, mainly because of reduced harvest yields resulting from the replacement of some mature palm trees.
Dr. Braimah pointed out that the surge of less expensive, illicitly imported refined oil products forced domestic manufacturers to sell Crude Palm Oil (CPO) at prices lower than those in the international market, substantially affecting BOPP’s income.
Despite a 21 percent decrease in sales volume, he mentioned that the launch of a new Crude Palm Kernel Oil (CPKO) facility assisted in mitigating part of the revenue loss through increased CPKO production.
Additionally, he mentioned that the total palm fruit processing for 2024 reached 121,787 metric tons, marking a decrease of 17% compared to the prior year. The decline primarily stemmed from reduced yields at both core estates and individual smallholdings, which can be partially ascribed to typical yearly variations in agricultural outputs along with the replanting efforts involving 500 hectares in 2021 and 601 hectares within smaller farms in 2023.
As he stated, BOPP acquired 46,085 metric tons of Fresh Fruit Bunches (FFB) from both scheme and non-scheme smallholders in the Western and Central regions for a sum of GH¢65 million. Additionally, the cost ofOutside Purchased Fruits (OPF) saw an increase of 21%, rising from GH¢1,560 per metric ton in 2023 to GH¢1,899 in 2024.
"The consistent improvement in the company’s performance underscores our commitment to effective policies and strong risk management systems," said Dr. Braimah.
Corporate Social Responsibility and Acknowledgment
In 2024, BOPP allocated GH¢1.6 million towards their Corporate Social Responsibility (CSR). This funding primarily supported projects in areas such as education, healthcare and hygiene, safety measures, infrastructure development, and enhancing the financial capabilities of small-scale farmers and individual cultivators. Furthermore, an additional GH¢2 million was utilized for scholarships benefiting 191 students—both children of employees and residents within nearby community regions—as part of the firm’s educational grant program.
BOPP received acknowledgment for its committed endeavors and was awarded second-runner up for the Best Corporate Social Responsibility (CSR) company in Ghana, as well as securing the second position in the Best Agribusiness category in 2024.
Outlook
Dr. Braimah looked forward, highlighting BOPP's dedication to working alongside governmental organizations to combat the surge of unauthorized palm oil entries.
He stated: "This problem impacts the functioning of our key clients — including downstream manufacturing firms and state tax collections."
Provided by Syndigate Media Inc. ( Syndigate.info ).
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