The improvement was driven by stronger oil palm sales alongside contributions from palm kernel products, livestock operations and sludge sales as the company gradually commercialises assets that had previously generated little income.
However, operating losses remained substantial at N782.63 million during the period, reflecting the costs of maintaining plantations, expanding processing facilities, supporting livestock operations and building the infrastructure required for future growth. Although the loss improved significantly from the N3.84 billion recorded in the previous reporting period, second-quarter operating losses widened to N509.02 million as higher production costs and lower crude palm oil (CPO) mill efficiency weighed on performance.
Cash Flow Decline
Cash and cash equivalents declined dramatically from N3.05 billion at the end of December 2025 to just N239.55 million by June 2026, representing a fall of more than 92%. Operating activities consumed ₦2.26 billion during the six-month period, while investing activities absorbed a further N317 million as the company continued to expand processing infrastructure.
For investors, the shrinking cash position raises important questions about how Ellah Lakes intends to finance the next phase of its expansion if operating cash generation does not improve.
Total liabilities dropped 93.6% to N504.66 million after Ellah Lakes converted N7.08 billion in outstanding directors’ loans into equity, reducing leverage substantially. Share capital rose from ₦1.93 billion to N3.20 billion while share premium increased to N14.03 billion, lifting shareholders’ equity by 21.1% to N24.75 billion. Debt-to-assets and debt-to-equity ratios both declined to approximately 2%, significantly strengthening the company’s capital structure.
Ellah Lakes Expansion
During the first half of the year, the company procured a replacement press for its crude palm oil mill to improve production reliability and acquired equipment for a new palm kernel oil (PKO) mill that will enable production of palm kernel oil and palm kernel cake. Both projects are expected to become operational during the second half of the year, allowing the company to extract greater value from its palm operations and diversify revenue streams.
Ellah Lakes also disclosed that its piggery operation has surpassed 1,000 pigs and has begun commercial sales of breeding gilts, creating a shorter-cycle revenue stream while the company’s oil palm plantations continue to mature. Management also plans to install an abattoir and cold-chain facility to support further expansion of livestock processing.
Commenting on the results, Chief Executive Officer Chuka Mordi said “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. These developments provide a stronger platform for Ellah Lakes as we continue to move deeper into commercial execution.
“Our immediate focus is to improve production reliability, restore stronger CPO Mill performance and complete the next stage of our processing roadmap. The planned replacement of the CPO press is an important step in improving milling efficiency, while the acquisition of PKO Mill equipment supports our broader objective of capturing more value across the palm value chain.
“We are also pleased with the continued scale-up of our livestock operations, which provides an important shorter cycle revenue vertical within our integrated agribusiness model. 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” He concluded.
