Zichis’ 9M 2026 pre-tax profit jumps 179% to N561.32 million as revenue hits N1.22 billion

Zichis Agro-Allied Industries Plc (ZAAI) recorded a 179.21% increase in pre-tax profit to N561.32 million for the nine months ended September 30, 2026, compared with N201.04 million in the corresponding period of 2025.

According to the company’s unaudited interim financial statements filed with the Nigerian Exchange (NGX) on Wednesday, October 28, 2026, revenue increased by 162.63% to N1.22 billion from N464.20 million.

The results came amid a significant expansion of the company’s balance sheet, including a N5 billion deposit for shares, increased long-term investments, and a sharp rise in total assets.

Profit after tax rose by 221.98% to N536.22 million from N166.54 million, while basic earnings per share increased to N0.47 from N0.28.

Egg sales led revenue growth

Zichis which was listed on NGX Growth Board on January 20, 2026, recorded double- or triple-digit growth across all five disclosed revenue segments, with egg sales remaining its largest source of revenue.

Revenue from eggs increased by approximately 124% to N394.72 million from N176.25 million, representing about 32.4% of total revenue.

• Feed mill revenue rose by approximately 231.5% to N293.93 million from N88.67 million, while palm oil produce increased by 130.1% to N235.53 million.
• Chicken sales climbed by approximately 196.6% to N211.34 million, while fish revenue grew by 225.5% to N83.60 million.
• Gross profit increased by 210.70% to N781.07 million, while gross margin improved to 64.07% from 54.16%.
• Administrative expenses rose by 336.45% to N219.75 million, including higher salaries, NGX/SEC listing expenses, and related professional fees.
• The improvement in gross profit outpaced revenue growth, as cost of sales increased by 105.84% to N438.04 million.

Nairametrics previously reported that Zichis recorded N328 million in profit and N676 million in revenue for the full year 2025, meaning its nine-month 2026 revenue has already surpassed the previous full-year figure.

The company also recorded a 27.26% decline in tax expense to N25.10 million, supporting a faster increase in after-tax profit.

N5 billion share deposit reshapes balance sheet

Zichis’ total assets increased by 719.36% to N8.71 billion from N1.06 billion as of September 2025, reflecting substantial additions to its asset base.

Property, plant and equipment rose to N6.93 billion, supported by N6.14 billion in additions, including land valued at N5.01 billion.

• Inventory increased by approximately 403% to N988.42 million, while cash and bank balances rose to N373.88 million from N8.46 million.
• Total liabilities increased to N7.06 billion from N53.10 million, comprising N2 billion in long-term debt and approximately N5 billion in deposits for shares.
• The share deposits relate to 1,012 acres of land valued at N2.783 billion and another 740 acres valued at N2.220 billion.
• Issued shares doubled to 1.2 billion from 600 million following a N300 million bonus capitalisation, increasing share capital to N600 million.

The company classifies the N5.003 billion deposit for shares as a non-current liability rather than equity, pending any subsequent conversion into issued shares. This is expected to further boost productivity and earnings with improved returns to shareholders in future if effectively utilized.

In May, shareholders approved plans to raise up to N50 billion through equity and debt, while the company subsequently reported a N2 billion non-equity capital injection from its core promoters in June.

Zichis shares gain 754% since listing

Zichis closed trading on Wednesday, October 28, 2026, at N17 per share, representing a 2.9% increase from its previous closing price of N16.52.

The company ended its January 20, 2026, listing day at N1.99 per share and has since gained approximately 754%, ranking second on the NGX in year-to-date share-price performance.

• With 1.2 billion shares outstanding, the N17 closing price placed the company’s market capitalisation at approximately N20.4 billion.
• Its free float stood at 379.11 million shares, or 31.59%, valued at N7.54 billion at the September 30 closing price of N19.90.
• The company reported that its free-float position met the Nigerian Exchange Growth Board requirements.
• Zichis also reported N835.11 million absorbed by inventory, N120 million in dividend payments, and N1.13 billion spent on fixed assets.
• The company’s nine-month results highlight rapid revenue growth alongside a major expansion in assets, liabilities, and share capital.

However, investors will be monitoring whether the enlarged asset base generates sustained revenue growth and operating cash flow. The potential conversion of deposits for shares into equity will also remain relevant to existing shareholders because of its possible effect on ownership dilution.