…Gross profit rose to N285.35 million (Q1 2025: N19.61 million)
…Interest-bearing borrowings reduced by 12.0% to N344.67 million (31 December 2025: N391.67 million)
TUE MAY 05 2026-theGBJournal| Ellah Lakes Plc, indigenous agribusiness company leading Nigeria’s agricultural transformation, Monday published its unaudited financial results for the three months ended 31 March 2026.
The first quarter reflects continued progress in Ellah Lakes’ transition from asset development into commercial execution, with revenue growth beginning to translate more meaningfully into improved operating performance.
The Company recorded stronger sales activity during the period, supported by growing commercial output from its operating platform and continued focus on disciplined execution.
”The first quarter represents another important step in Ellah Lakes’ transition into commercial execution. The stronger revenue momentum recorded during the period was supported by improved production stability, better operational uptime and more disciplined sales execution,” said CEO Chuka Mordi, while commenting on the performance.
”Importantly, we also narrowed our operating loss year-on-year, reflecting the benefit of higher gross profit and continued cost discipline. These results provide an encouraging early indication that the business is gaining operating momentum.”
Ellah Lakes continued to focus on scaling output, improving efficiency, and converting its agricultural asset base into stronger commercial performance.
The quarter’s results show early evidence of this transition, with revenue increasing significantly year-on-year and operating loss narrowing compared with the prior-year quarter.
During the first quarter, Ellah Lakes recorded N359.49 million in revenue (Q1 2025: N19.61million), driven by initial harvests and sales of Crude Palm Oil (CPO).
Mr Mordi notes that the Company’s CPO mill is now operational, piggery operations continue to scale, and they are advancing the next stage of its processing roadmap through the planned installation of a 40 tonnes-per-day Palm Kernel Oil (PKO) mill In Q2 2026.
”In parallel, we are strengthening our operating systems and exploring technical partnerships to improve asset utilisation and execution as the business scales.
Our focus remains on disciplined execution, prudent capital stewardship and long-term value creation for shareholders.”
Gross profit rose to N285.35 million (Q1 2025: N19.61 million), supported by revenue growth during the quarter.
In the prior-year period, gross profit was in line with revenue as no cost of sales was recognised, reflecting the early stage of commercial activity at the time.
In Q1 2026, the Company recorded N74.14 million in cost of sales as operations continued to scale, with gross margin at 79.4%.
Operating loss narrowed by 46.8% to N273.42 million (Q1 2025: N514.18 million). The improvement reflects the impact of higher gross profit, lower administrative expenses, and continued operating discipline during the quarter
The Company maintained a relatively controlled operating cost base during the quarter, with total cost increasing by 10.1% to N587.67 million (Q1 2025: N533.79 million).
Total Assets stood at N26.10 billion as at 31 March 2026 (31 December 2025: N28.26 billion). The movement mainly reflects a reduction in current assets, particularly cash and cash equivalents, while non-current assets remained broadly stable, increasing marginally by 0.2% to N25.03 billion.
The Company’s core asset base continues to be anchored by property, plant and equipment of N24.76 billion, alongside biological assets and goodwill, supporting its ongoing transition into scaled commercial activity.
Total liabilities remained broadly stable at N7.81 billion (31 December 2025: N7.83 billion). The liability base is largely made up of shareholder and director related funding support of N7.08 billion, underscoring continued stakeholder support during the Company’s scale-up phase.
Interest-bearing borrowings reduced by 12.0% to N344.67 million (31 December 2025: N391.67 million), reflecting continued repayment of the Company’s secured borrowing obligations.
Total equity stood at N18.29 billion (31 December 2025: N20.43 billion). The movement was mainly driven by the increase in accumulated losses during the quarter, while the Company’s core capital accounts remained unchanged.
Ellah Lakes’ equity base continues to be supported by its long-term asset position.
Debt-to-assets increased to 29.9% as at 31 March 2026 (31 December 2025: 27.7%), while debt-to-equity rose to 42.7% (31 December 2025: 38.3%). The movement reflects the change in the Company’s balance sheet during the quarter.
Management remains focused on maintaining funding discipline, reducing secured borrowings where appropriate, and improving cash conversion as the business scales revenue and processing activity.
Looking ahead, Management remains focused on scaling output, improving yields and deepening value-chain integration as the Company converts its asset base into stronger operating performance.
According to the company’s management, a key priority is the next step in the Company’s processing value chain.
In Q2, Ellah Lakes expects to sign the construction agreement for a new 40 tonnes-per-day PKO processing mill, with the facility targeted to become operational in Q4 2026.
Once completed, the mill will broaden processing capacity, deepen value across the palm value chain and support a more diversified operating base.
In parallel, the Company is pursuing strategic technical partnerships to strengthen asset utilisation, improve operational efficiency, enhance process control and reduce ramp-up risk.
The Board will also continue to prioritise oversight of major projects, prudent risk management, funding discipline and clearer shareholder communication as the business moves further into an execution-heavy phase.
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