Cameroon’s PAMOL Narrows 2025 Loss, but Core Business Remains Deep in the Red

PAMOL Plantations PLC reported a net loss of CFA519.5 million for the 2025 financial year, a sharp improvement from the CFA3.85 billion loss recorded in 2024. However, audited financial statements reviewed by Business in Cameroon show that the better bottom line does not reflect a lasting operational recovery.

The company’s auditors, Akintola Williams & Co, said the financial statements for the year showed a loss of CFA519,478,307, reducing shareholders’ equity and related resources to CFA18.1 billion.

Revenue remained largely unchanged at CFA2.54 billion in 2025, compared with CFA2.52 billion a year earlier, indicating that the company has yet to generate enough growth to absorb its operating costs. Most of PAMOL’s revenue continued to come from processed products, mainly palm oil, its core business.

Established in 1996 to take over the assets and liabilities of Plantations Pamol du Cameroon Ltd, PAMOL grows oil palm and produces palm oil, while also operating a smaller rubber business. The company owns plantations in Lobe, Ndian, and Bai, with palm oil mills in Ndian and Lobe. The Bai estate focuses mainly on rubber production.

One-off gains drove the improvement

The sharp reduction in the net loss should be viewed with caution because the company’s core operations weakened further during the year. PAMOL posted an operating loss of CFA3.69 billion in 2025, compared with CFA3.15 billion in 2024, showing that its main business continued to generate significant losses.

Value added remained negative at CFA585.3 million, compared with CFA227.3 million a year earlier, reflecting the company’s continued inability to generate sufficient value from its production activities. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also remained negative at CFA2.35 billion, compared with CFA1.61 billion in 2024.

The smaller net loss was largely the result of CFA3.22 billion in non-operating income, including CFA3.19 billion in restructuring-related revenue. In 2024, the same category recorded a CFA675.8 million non-operating loss. The improvement therefore stemmed mainly from exceptional accounting items rather than stronger industrial performance. As a result, PAMOL lost less money in 2025, but its underlying business remained structurally unprofitable.

Costs continue to outweigh revenue

The company’s cost structure remained a major challenge. Personnel expenses rose to CFA1.76 billion in 2025 from CFA1.39 billion in 2024, accounting for nearly 70% of annual revenue.

External service costs also increased sharply to CFA2.05 billion, up from CFA1.32 billion a year earlier, adding further pressure to operating margins.

Other operating expenses remained high, including CFA207.2 million for raw materials, CFA652.7 million for other purchases, CFA542.6 million for transportation, and CFA469 million for other operating costs. Depreciation and provisions totaled CFA1.52 billion. Total assets stood at CFA40.1 billion at the end of 2025, down slightly from CFA41.2 billion a year earlier, reflecting a balance sheet that remains under pressure as the company continues to rely on government support and restructuring measures.

Operating subsidies reached CFA129 million in 2025, up from CFA100 million in 2024. Investment grants and similar support totaled CFA6.54 billion on the liabilities side of the balance sheet, while the cash flow statement shows the company also received CFA400 million in investment-related subsidies during the year.

Despite that support, liquidity remained weak. Cash flow from operating activities stayed negative at CFA382.8 million, while net cash deteriorated from negative CFA1.19 billion at the beginning of the year to negative CFA1.80 billion at year-end.

Against that backdrop, PAMOL’s recently announced CFA36 billion 10-year recovery plan appears necessary but far from sufficient. The program aims to modernize infrastructure, revive production, and clear salary arrears, but its immediate challenge will be restoring the company’s ability to generate positive operating margins.

The 2025 financial results therefore present a mixed picture. While PAMOL significantly reduced its net loss, it remains far from achieving a sustainable turnaround. The real test will be whether the company can increase production, control costs, improve productivity, and reduce its dependence on public support.

Amina Malloum