Ellah Lakes Plc has reported an operating loss of N1.87 billion for the seventeen months ended December 31, 2025, as rising administrative and personnel costs continued to outpace revenue growth.
The results were contained in the company’s consolidated unaudited financial statements released to the investing public and filed with the Nigerian Exchange (NGX) on Tuesday, February 3, 2026.
While revenue and other income recorded notable improvements during the period, high operating expenses, finance costs, and weak cost controls weighed heavily on overall performance, deepening accumulated losses.
Key financial highlights (17 months ended December 31, 2025 vs prior period):
- Revenue: N146.66 million, up from N19.75 million
- Gross Profit: N130.06 million, up from N19.75 million
- Operating Loss: N1.87 billion, widened from N1.43 billion
- Loss per share: -60 kobo, improved from -71 kobo
- Other Income: N268.50 million, up from N16.18 million
- Administrative Expenses: N1.20 billion, up from N506.98 million
- Personnel Expenses: N1.19 billion, up from N935.59 million
- Finance Costs: N66.39 million, down from N166.58 million
- Total Assets: N30.29 billion, down from N31.05 billion (July 2025)
- Total Liabilities: N8.28 billion, down slightly from N8.39 billion (July 2025)
- Equity: N22.01 billion, down from N22.66 billion (July 2025)
What the data is saying
Ellah Lakes recorded improved topline performance during the 17-month period, but the gains were insufficient to offset escalating costs.
Revenue rose sharply, supported by higher sales activity and a significant increase in other income, particularly foreign exchange gains.
- Revenue increased to N146.66 million from N19.75 million in the comparable period.
- Gross profit stood at N130.06 million, compared to N19.75 million previously, as cost of sales rose to N16.60 million.
- Other income surged to N268.50 million, driven largely by foreign exchange gains of N191.99 million and interest income.
- Operating loss widened to N1.87 billion from N1.43 billion, with loss per share improving slightly to -60 kobo from -71 kobo.
Overall, the data shows that although revenue momentum improved, cost pressures continued to overwhelm operating performance.
More insights
The agribusiness company’s operating expenses expanded significantly during the period, eroding the benefits of higher revenue and other income.
- Administrative and personnel-related costs remained the largest contributors to the operating loss.
- Administrative expenses more than doubled to N1.20 billion from N506.98 million.
- Personnel expenses increased to N1.19 billion from N935.59 million, reflecting higher salaries, wages, and pension costs.
- Finance costs stood at N66.39 million, linked mainly to interest payments on outstanding loans.
- Depreciation charges amounted to N6.08 million during the period.
These rising cost lines highlight persistent structural challenges in Ellah Lakes’ cost management framework.
Quarterly performance still under pressure:
Despite stronger quarterly revenue, profitability remained elusive in the three months ended December 31, 2025.
The fourth quarter performance underscored the company’s ongoing struggle to translate sales growth into earnings.
- Quarterly revenue rose to N79.25 million from N18.97 million in the corresponding quarter of 2024.
- Other income for the quarter amounted to N180.59 million.
- Operating loss for the quarter came in at N432.06 million.
The quarterly figures suggest that cost pressures remained elevated even as sales activity picked up toward year-end.
Balance sheet position
Ellah Lakes’ balance sheet reflected modest contraction in asset base and continued pressure on equity levels.
- Higher accumulated losses during the period contributed to a decline in shareholders’ funds.
- Total assets declined to N30.29 billion from N31.05 billion in July 2025.
- Non-current assets stood at N26.75 billion, with property, plant, and equipment accounting for N25.04 billion.
- Cash and cash equivalents dropped sharply to N2.93 billion from N5.90 billion.
- Total liabilities eased slightly to N8.28 billion, while total equity fell to N22.01 billion.
Accumulated losses increased to N6.26 billion, reflecting the impact of sustained operating deficits.
What you should know
Ellah Lakes Plc operates as an agribusiness company with significant investments in large-scale farming and related infrastructure.
- The company has continued to commit capital to asset development despite ongoing losses.
- Property, plant, and equipment additions during the period amounted to N184.5 million.
- Personnel expenses remained elevated at N1.19 billion, up from N935.6 million in the prior period.
- Cash and cash equivalents declined to N2.93 billion, reflecting sustained cash burn.
- Retained losses rose to N6.26 billion from N5.61 billion as of July 2025.
Overall, the latest results show that while Ellah Lakes has made progress in growing revenue and other income, the company continues to face significant operational and financial headwinds as rising costs and negative cash flows weigh on its financial position.
