Ellah Lakes posts N782.6m half‑year loss as revenue jumps 264%

Ellah Lakes Plc reported an operating loss of ₦782.63 million for the six months ended June 30 2026, an improvement from the ₦3.84 billion loss for the 17‑month audited period ended December 31 2025. Revenue jumped 264% to ₦533.86 million, driven mainly by oil‑palm sales with contributions from palm‑kernel products, livestock and sludge sales.

The improvement reflects stronger commercial activity as the company scales its agribusiness platform. However, higher operating costs – personnel (₦473.10 m), administrative (₦574.13 m) and depreciation (₦95.78 m) – pushed total expenses to ₦1.16 billion, outweighing gross profit and widening the Q2 2026 loss to ₦509.02 million from ₦294.64 million a year earlier, even though revenue rose.

The balance sheet strengthened: total liabilities fell 93.6% to ₦504.66 million after directors' loans were converted to equity, pushing total equity up 21.1% to ₦24.75 billion. Cash fell sharply to ₦239.55 million from ₦3.05 billion, with operating activities consuming ₦2.26 billion and capital expenditure at ₦328.50 million. The share price closed at ₦8.80 on August 4 2026, down 34.33% year‑to‑date.

Management says the loss reflects the ongoing scale‑up phase and outlines 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. Investors should watch whether revenue growth can outpace cash burn as these projects come on stream.

SOURCE: https://nairametrics.com/2026/08/05/ellah-lakes-narrows-h1-loss-as-revenue-jumps-264/