Ellah Lakes narrows H1 loss as revenue jumps 264%

Ellah Lakes Plc has reported an operating loss of N782.63 million for the six months ended June 30, 2026, an improvement from the operating loss of N3.84 billion reported for the 17-month audited period ended December 31, 2025.

Revenue increased significantly to N533.86 million as the company scaled commercial operations across its agribusiness platform.

This is according to the company’s financial results disclosed on the Nigerian Exchange (NGX) and seen by Nairametrics.

For the second quarter of 2026, operating loss widened to N509.02 million from N294.64 million in the corresponding quarter of 2025 despite a substantial increase in revenue, reflecting higher operating costs associated with the company’s expansion phase.

Key Highlights

• Revenue: N533.86 million (Up 264.0% from N146.66 million)
• Gross Profit: N342.41 million (Up 163.3% from N130.06 million)
• Operating Loss: N782.63 million (Improved from Operating Loss of N3.84 billion)
• Pre-tax Loss: N782.63 million (Improved from Pre-tax Loss of N3.84 billion)
• Total Liabilities: N504.66 million (Down 93.6% from N7.83 billion)
• Total Equity: N24.75 billion (Up 21.1% from N20.43 billion)
• Earnings Per Share: Loss of N0.28 per share (Improved from Loss of N1.00 per share)

Driving the numbers

Ellah Lakes’ first-half performance was driven by stronger commercial activity across its integrated agribusiness platform.

• Revenue rose 264.0% to N533.86 million, supported mainly by oil palm sales, with additional contributions from palm kernel-related products, livestock operations and sludge sales.

The significant increase in revenue demonstrates growing commercial traction as the company scales its agricultural operations.

• Gross profit increased 163.3% to N342.41 million, reflecting stronger production and sales activity. However, higher operating costs offset much of this benefit.
• Cost of sales rose to N191.45 million from N16.60 million, while total operating expenses increased to N1.16 billion as the company continued investing in personnel, administrative infrastructure and operating systems required to support its expansion.
• Personnel expenses amounted to N473.10 million, while administrative expenses reached N574.13 million, making them the largest contributors to the company’s cost structure.
• Depreciation charges of N95.78 million also reflected the growing asset base supporting farm and processing operations. These expenses exceeded gross profit and resulted in an operating loss of N782.63 million.

A notable development during the period was the strengthening of the balance sheet.

• Total liabilities declined sharply by 93.6% to N504.66 million following the conversion of directors’ loans into equity. As a result, total equity increased 21.1% to N24.75 billion, while debt-to-assets and debt-to-equity ratios both improved to 2.0%. This significantly reduced leverage and improved financial flexibility.
• Liquidity weakened during the period as cash and cash equivalents declined to N239.55 million from N3.05 billion. Operating activities consumed N2.26 billion in cash, while capital expenditure amounted to N328.50 million.

Although the company raised additional equity capital and share premium during the period, cash resources were deployed to support operations, asset development and debt reduction.

Balance Sheet

Total External Debt: N297.67 million (Down 24.0% from N391.67 million)

Total Assets: N25.25 billion (Down 10.6% from N28.26 billion)

Cash Balance: N239.55 million (Down 92.2% from N3.05 billion)

Management Commentary

Management attributed revenue growth primarily to oil palm sales, supported by contributions from palm kernel-related sales, livestock operations and sludge sales.

According to Chuka Mordi, Chief Executive Officer of Ellah Lakes Plc, the first half of 2026 was an important period in strengthening the foundations of the business.

• “We recorded continued revenue growth, completed a major balance sheet restructuring and advanced key operating initiatives across processing and livestock. These developments provide a stronger platform for Ellah Lakes as we continue to move deeper into commercial execution.”

The company noted that the operating loss reflects the ongoing scale-up phase, including investments in farm operations, processing activities, personnel, logistics, security and business support functions.

• “We are also pleased with the continued scale-up of our livestock operations, which provides an important shorter-cycle revenue vertical within our integrated agribusiness model. As our plantation assets continue to mature, we remain focused on broadening our revenue base, improving operating efficiency, strengthening cash generation and building a more resilient platform for long-term shareholder value”

The company also highlighted plans to complete a crude palm oil mill upgrade, install palm kernel oil mill equipment, expand livestock operations and develop an abattoir and cold-chain facility to support future growth.

Market reaction

Ellah Lakes share price closed at N8.80 on Tuesday August 4, 2026.

This marks a 34.33% year-to-date decline when compared to N13.40 it closed at the end of 2025.

What you should know

Ellah Lakes had reported a net loss of N3.86 billion for the financial year ended December 31, 2025, deepening its losses compared to N729.34 million recorded in 2024, as rising operating costs outweighed gains from new revenue streams.

This was largely driven by a significant cost incurred from its aborted N235 billion capital raise due to advisory, legal, and regulatory engagements tied to the transaction.

For the 17-month period ended December 31, 2025, the company reported “aborted public offer costs” of N1.7 billion, a spike compared to just N54.3 million recorded in July 2024.

Despite these challenges, Ellah Lakes announced in June the acquisition of the first batch of expellers and presses for its planned Palm Kernel Oil mill as part of efforts to expand its processing operations and diversify its revenue sources.