…Revenue rose to ₦533.86 million in H1 2026
…Gross profit reached ₦342.41 million during the six-month period, underpinned by the higher revenue base.
…Second-quarter gross profit was broadly unchanged at ₦55.66 million, compared with ₦57.65 million a year earlier
MON AUG 03 2026-theGBJournal| Ellah Lakes Plc today reported stronger first-half revenue and a strengthened balance sheet as the Nigerian integrated agro-industrial company accelerated investments in its palm processing and livestock businesses, even as expansion-related costs kept it in an operating loss during the period.
The company said its unaudited results for the six months ended June 30, 2026, reflected continued commercial momentum alongside strategic investments aimed at improving operational efficiency and supporting long-term shareholder value.
Revenue rose to ₦533.86 million in H1 2026, driven by stronger commercial activity across the group’s operating platform.
On a quarterly basis, revenue increased to ₦173.87 million in the second quarter from ₦58.56 million a year earlier, supported primarily by higher crude palm oil (CPO) sales, with additional contributions from palm kernel-related products, livestock and sludge sales.
Gross profit reached ₦342.41 million during the six-month period, underpinned by the higher revenue base.
However, second-quarter gross profit was broadly unchanged at ₦55.66 million, compared with ₦57.65 million a year earlier, as increased cost of sales offset much of the benefit from stronger revenue growth.
The company reported an operating loss of ₦782.63 million for the first half, reflecting the costs associated with scaling up farm operations, processing activities, logistics, security, personnel and other support functions.
Second-quarter operating loss widened to ₦509.02 million from ₦294.64 million in the corresponding period of 2025, largely due to higher production costs, weaker CPO mill efficiency and expenses linked to expanding the group’s operating platform.
Chief Executive Officer Chuka Mordi said the period represented a significant milestone in strengthening the company’s operating and financial foundations.
“The first half of 2026 was an important period in strengthening the foundations of our business.
We recorded continued revenue growth, completed a major balance sheet restructuring and advanced key operating initiatives across processing and livestock,” Mordi said.
“Our immediate focus is to improve production reliability, restore stronger CPO Mill performance and complete the next stage of our processing roadmap.
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.”
As part of its operational strategy, Ellah Lakes said it plans to replace its CPO press and complete the installation of palm kernel oil (PKO) mill equipment.
Management expects the new CPO press to improve milling reliability, while the PKO mill will expand processing capacity through the production of palm kernel oil and palm kernel cake, enabling the company to capture greater value across the palm value chain.
The company also continued expanding its livestock business, describing the piggery operation as an important short-cycle revenue stream.
It plans to install an abattoir and cold-chain facility to enhance processing capacity, improve product handling and storage, and strengthen market access for livestock products.
Ellah Lakes said management remains focused on disciplined execution, stronger cash generation, asset protection, risk management and enhanced shareholder communication as it advances the next phase of its growth strategy.
“The Company remains committed to building a scalable agro-industrial platform anchored on operational integration, disciplined execution and long-term value creation,” Ellah Lakes said.
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