Zichis Agro-Allied Industries Plc has released its Q1 2026 financial results, reporting a pre-tax profit of N241.4 million, a sharp increase from N30.5 million recorded in the corresponding period of 2025.
This is according to its unaudited financial statement for the period ended March 31, 2026, which the company filed with the Nigerian Exchange on Thursday, April 23, 2026.
The performance was driven largely by a surge in revenue, which rose to N420.0 million, representing a 256% year-on-year increase from N118.1 million recorded in Q1 2025.
The strong topline growth was underpinned by higher output across key product segments, particularly eggs, feed mill products, and palm oil products, all of which recorded significant gains during the period.
This robust performance trickled down to the bottom line, as profit after tax climbed to N228.9 million from N24.9 million, reflecting an 819% increase year-on-year.
Key highlights (Q1 2026 vs Q1 2025):
- Revenue: N420.0 million, up 256% YoY
- Cost of sales: N112.4 million, up 94% YoY
- Profit before tax: N241.4 million, up 690% YoY
- Profit after tax: N228.9 million, up 819% YoY
- Administrative expenses: N66.2 million, up 124% YoY
- Total assets: N1.46 billion, up 19% YoY
- Shareholders’ equity: N1.40 billion, up 20% YoY
Driving the numbers:
A breakdown of revenue shows that eggs contributed N135.3 million, up from N49.3 million in the prior year, while feed mill products generated N94.1 million compared to N26.4 million previously.
- Palm oil production also delivered strong growth, contributing N92.4 million, significantly higher than N11.3 million recorded in Q1 2025.
- Chicken sales rose to N69.8 million from N14.7 million, while fish sales increased modestly to N28.5 million from N16.5 million.
- Cost of sales rose in line with increased production, climbing by 94% to N112.4 million, reflecting higher input costs across fish, poultry, and feed materials.
- Administrative expenses also expanded by 124% to N66.2 million, up from N29.6 million, driven by higher salaries, listing-related costs, professional fees, and advertising expenses.
- The largest portion of this increase came from salaries and wages, which jumped to N11.54 million in 2026 from N3.65 million in 2025.
- Other notable contributors were NGX/SEC listing expenses (N7.81 million in 2026 vs N3.63 million in 2025), and professional fees related to listing activities (N8.35 million in 2026).
Despite the rise in costs, strong revenue growth supported profitability, with pre-tax profit rising to N241.4 million. After an income tax charge of N12.6 million, profit after tax settled at N228.9 million.
Balance sheet performance:
On the balance sheet, total assets increased to N1.46 billion from N1.23 billion, supported by growth in both current and non-current assets.
- Shareholders’ equity rose by 20% to N1.40 billion, reflecting retained earnings growth, while current liabilities increased moderately to N63.6 million.
- Cash flow from operating activities improved to N150.6 million, though net cash flow declined to N4.63 million.
- Cash and bank balances stood at N22.1 million at the end of the period.
Inventories grew significantly to N328.13 million in 2026 from N211.53 million in 2025, a 55% increase. This suggests that while the company’s production is increasing, it may be facing challenges in inventory turnover.
Market reaction:
Zichis Agro-Allied Industries closed at N14.19 per share on Thursday, April 23, 2026, representing a 2.2% gain from its previous close.
- Since listing at N1.99 in January 2026, the stock has surged by over 600%, making it one of the top-performing equities on the Nigerian Exchange so far this year.
- The company has also recorded strong trading activity, with over 438 million shares exchanged in more than 10,000 deals within three months, reflecting growing investor interest.
With sustained growth across its core agricultural segments and strong market momentum, investors are expected to closely monitor Zichis’ performance in subsequent quarters.
