Rising operating costs have erased the gains from Ellah Lakes’ higher sales in the first half of 2026, underscoring the steep financial pressures of its ongoing expansion.
The company’s preliminary financial report for the first half of 2026 shows a massive 264 per cent jump in revenue, climbing to ₦533.86 million from ₦146.66 million in the same period last year.
This growth was primarily driven by robust oil palm sales, complemented by contributions from palm kernel products, livestock, and sludge sales.
Gross profit jumped by an impressive 163.3 per cent, rising to ₦342.41 million from ₦130.06 million, showcasing boosted commercial activity throughout the group’s operations.
Despite this strong top-line performance, the company reported an operating loss.
Operating expenses grew at a faster pace than revenue, with total operating costs reaching ₦1.16 billion during the period, more than double the company’s revenue.
This resulted in an operating loss of ₦782.63 million. Administrative expenses amounted to ₦574.13 million, and personnel costs stood at ₦473.10 million, indicating continued investment in human resources, production systems, logistics, security, and other infrastructure necessary for scaling operations.
The quarterly performance further highlighted these financial pressures.
Although second-quarter revenue almost tripled year-on-year to ₦173.87 million, gross profit remained relatively stable. This was due to higher production costs and reduced efficiency at the crude palm oil mill, which offset the benefits of stronger sales.
Consequently, the operating loss widened to ₦509.02 million, compared to ₦294.64 million in the corresponding quarter of 2025.
Notwithstanding the earnings challenges, the company’s balance sheet showed…
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