Ellah Lakes’ revenue jumps to record as palm oil operations begin

Ellah Lakes Plc reported its highest-ever revenue after beginning early commercial activity in its palm and livestock operations, as the Nigerian agro-industrial company transitions from asset development to production.

Revenue rose to N146.66 million for the 17 months ended December 31, 2025, from N0.78 million in the prior 12-month period, driven largely by initial harvests and sales of fresh fruit bunches from its oil palm business. The company said the performance reflects the first meaningful income from its core operations.

The results mark a turning point for Ellah Lakes as it starts generating cash flows from assets built over several years, even as earnings remain modest relative to its long-term expansion plans.

A key milestone during the period was the commissioning of a 5-tonnes-per-hour crude palm oil mill in July 2025, allowing the company to process output internally and capture more value across its palm oil value chain. Revenue from oil palm accounted for N136.41 million, while livestock operations contributed N10.25 million.

Gross profit rose to N130.06 million, underscoring the high-margin nature of early-stage production, though the company said results were still weighed by expansion costs and one-off expenses tied to its transition into commercial operations.

Chief Executive Officer Chuka Mordi said the period reflects a shift “from asset development into early-stage commercial operations,” adding that the focus now is on improving yields, increasing processing capacity and driving operational efficiency.

The company, in a separate disclosure, had confirmed its target to complete the acquisition of Agro-Allied Resources & Processing Nigeria Limited (ARPN) from Singapore-based Tolaram Group by Q1 2026, a move aimed at expanding its oil palm plantation and processing capacity. This comes despite a failed N235 billion capital raise in late 2025.

Total assets climbed 15.1 percent to N28.26 billion, reflecting continued investment in plantations and processing infrastructure, while liabilities surged to N7.83 billion due mainly to N7.08 billion in related-party payables linked to an uncompleted public offer. Equity declined 6.5 percent to N20.43 billion.

The company expanded its planting program during the period, with 17,000 seedlings planted and 47,000 maintained in nurseries, supporting future output as more hectares mature into production.

Ellah Lakes said it is entering the new financial period with a stronger operational base, underpinned by its landbank, processing capacity, and growing activity across palm oil, cassava, and livestock segments.

As Nigeria pushes to boost domestic food production and reduce imports, the company is positioning to scale output and deepen value-chain integration, though execution risks remain amid a challenging macroeconomic environment.