Ellah Lakes Plc has posted a deeper operating loss of N1.87 billion for the seventeen months ended December 31, 2025, underscoring persistent cost pressures that continue to overshadow gains from improved revenue and other income.

The agribusiness company disclosed the performance in its consolidated unaudited financial statements released to the investing public and filed with the Nigerian Exchange (NGX) on Tuesday.

The latest figures show a sharp rebound in topline performance, with revenue climbing to N146.66 million from N19.75 million in the comparable period, supported by higher sales activity. Gross profit also rose significantly to N130.06 million, reflecting relatively low cost of sales of N16.60 million during the period.

However, these gains were insufficient to offset escalating operating expenses, as administrative and personnel costs expanded aggressively, widening losses and further weakening profitability.

Ellah Lakes’ operating loss increased to N1.87 billion from N1.43 billion in the prior period, even as loss per share improved marginally to 60 kobo from 71 kobo, largely due to changes in share structure rather than a fundamental turnaround in operations.

A major support to income during the period came from other income, which surged to N268.50 million from N16.18 million, driven mainly by foreign exchange gains of N191.99 million and interest income. Yet, analysts note that these are largely non-core and volatile income sources, offering limited relief against structurally high operating costs.

Administrative expenses more than doubled to N1.20 billion from N506.98 million, while personnel expenses climbed to N1.19 billion from N935.59 million, reflecting higher salaries, wages, and pension-related costs. Together, these two cost lines accounted for the bulk of the operating loss, highlighting ongoing weaknesses in cost management.

Finance costs declined to N66.39 million from N166.58 million, offering some respite, while depreciation charges stood at N6.08 million.

Quarterly figures for the three months ended December 31, 2025, further illustrated the company’s struggle to translate stronger sales into profitability. Revenue for the quarter rose to N79.25 million from N18.97 million in the corresponding quarter of 2024, while other income amounted to N180.59 million. Despite this, Ellah Lakes recorded an operating loss of N432.06 million for the quarter, indicating that cost pressures remained elevated even as activity picked up toward year-end.

On the balance sheet, Ellah Lakes recorded a modest contraction in its asset base alongside continued pressure on equity. Total assets declined to N30.29 billion from N31.05 billion as of July 2025, with non-current assets accounting for N26.75 billion. Property, plant, and equipment remained dominant at N25.04 billion, reflecting the company’s continued capital commitment to large-scale farming infrastructure.

Cash and cash equivalents dropped sharply to N2.93 billion from N5.90 billion, pointing to sustained cash burn amid ongoing operating losses. Total liabilities eased slightly to N8.28 billion from N8.39 billion, while equity declined to N22.01 billion from N22.66 billion.

Accumulated losses increased to N6.26 billion, up from N5.61 billion as of July 2025, reinforcing concerns over the long-term sustainability of the company’s current operating structure.

Ellah Lakes, which operates as an agribusiness company with significant investments in large-scale farming and related infrastructure, continued to commit capital during the period, with additions to property, plant, and equipment amounting to N184.5 million.

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