Ellah Lakes Plc has released its financial results for the six months ended June 30, 2026, showing a significant reduction in its operating loss to N782.63 million. This represents a major improvement from the operating loss of N3.84 billion reported for the 17-month audited period ended December 31, 2025.
The agribusiness firm recorded a 264.0% jump in revenue to N533.86 million, up from N146.66 million. This growth was primarily driven by oil palm sales, alongside contributions from palm kernel-related products, livestock operations, and sludge sales.
Despite the revenue growth, the company's second-quarter operating loss widened to N509.02 million from N294.64 million in Q2 2025. This widening loss reflects rising operating costs associated with the company's ongoing expansion phase.
Balance Sheet Restructuring and Debt Reduction
A major development during the half-year was the restructuring of the company's balance sheet. Total liabilities fell by 93.6% to N504.66 million from N7.83 billion, following the conversion of directors' loans into equity.
Consequently, total equity rose 21.1% to N24.75 billion from N20.43 billion. Both the debt-to-assets and debt-to-equity ratios improved to 2.0%, reducing leverage and enhancing financial flexibility.
However, liquidity weakened as cash and cash equivalents fell 92.2% to N239.55 million from N3.05 billion. Operating activities consumed N2.26 billion in cash, while capital expenditure stood at N328.50 million. Total external debt also declined by 24.0% to N297.67 million from N391.67 million, while total assets dropped 10.6% to N25.25 billion.
Operational Scaling and Future Outlook
The company's cost of sales increased to N191.45 million from N16.60 million, while total operating expenses reached N1.16 billion. Personnel expenses of N473.10 million and administrative expenses of N574.13 million were the primary cost drivers. Depreciation charges also stood at N95.78 million, reflecting the company's expanding asset base.
Chief Executive Officer Chuka Mordi stated that the first half of 2026 was crucial for strengthening the business foundations. He noted that the company completed a major balance sheet restructuring and advanced key operating initiatives across processing and livestock.
Ellah Lakes 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. This follows its June 2026 acquisition of the first batch of expellers and presses for its planned Palm Kernel Oil mill.
Market Reaction and Historical Context
On the Nigerian Exchange, Ellah Lakes' share price closed at N8.80 on Tuesday, August 4, 2026. This represents a 34.33% year-to-date decline from the N13.40 closing price at the end of 2025.
The company previously reported a net loss of N3.86 billion for the financial year ended December 31, 2025, compared to N729.34 million in 2024. The deep 2025 loss was heavily influenced by N1.7 billion in aborted public offer costs from an unsuccessful N235 billion capital raise, compared to just N54.3 million in July 2024.
