Shareholders of Zichis Agro-Allied Industries Plc are set to receive a generous reward package following a sharp improvement in the company’s 2025 financial performance, as the agribusiness firm proposed a cash dividend and a one-for-one bonus share issue despite its shares currently being under trading suspension on the Nigerian Exchange Limited (NGX).

The company announced a proposed 20 kobo dividend per share alongside a bonus issue of one new share for every existing share held, signalling management’s confidence in its financial outlook after delivering a strong turnaround in profitability for the 2025 financial year.

The proposed shareholder reward is estimated at N120 million, representing about a 300 per cent increase compared with the N30 million payout recorded in 2024.

The announcement came shortly after the Exchange suspended trading in the company’s shares amid an ongoing regulatory investigation into the stock’s extraordinary price movement since its listing earlier this year.

According to the company’s audited financial statements for the year ended December 31, 2025, profit before tax surged by 420.8 per cent to N364.21 million, up from N69.93 million recorded in 2024.

The remarkable improvement was driven largely by a sharp rise in revenue across the company’s core agricultural segments.

Total revenue climbed 133.79 per cent to N675.6 million, compared with N288.9 million in the previous year, reflecting stronger operational activity and expansion across its poultry, oil palm and feed production businesses.

A breakdown of the revenue showed that egg sales generated N226.7 million, while palm produce contributed N182.7 million, making them the major drivers of the company’s topline growth.

The strong earnings momentum translated into a significant increase in earnings per share, which rose to 55 kobo from 9.45 kobo in the preceding year.

Despite higher production costs, the company maintained strong margins during the period. Cost of sales rose to N212.81 million from N153.46 million, with egg-related production accounting for about 52.68 per cent of the total.

Nevertheless, gross profit expanded sharply to N462.8 million, up from N135.5 million in 2024, underscoring the strength of its revenue growth.

The company’s balance sheet also strengthened during the year as total assets increased to N1.22 billion.

A significant portion of this asset base is tied to its production infrastructure, with property, plant and equipment valued at N741.3 million, reflecting continued investment in operational capacity.

Management said the company intends to sustain this growth momentum through expansion projects already underway in 2026.

Speaking on the company’s outlook, Managing Director of Zichis Agro-Allied Industries Plc, Anthonia Akabusi, disclosed that the firm plans to significantly expand its operations this year, including investments in oil palm cultivation and feed production.

She said the company aims to acquire about 2,000 acres of land in Ogun State for oil palm plantation, as part of efforts to deepen its presence in the agricultural value chain.

Also speaking, Executive Director, Finance and Strategy, Chris Ogbaisi, said the company had already commenced implementation of its 2026 growth strategy.

According to him, the company’s feed milling plant, one of its key revenue drivers, has been upgraded.

“Zichis feed milling plant, which is one of our cash cows, has been increased to five tonnes per hour, and we estimate about 600 tonnes monthly output. We expect the facility to be commissioned within the next two weeks in March 2026,” he said.

He also revealed that the company has expanded its poultry operations.

“Our layers have increased to 25,000 birds, and by the second quarter of 2026 we plan to increase this to 50,000 layers, targeting about 80 per cent production capacity,” he said.

Ogbaisi added that the company currently operates 61 acres of oil palm plantation, while plans to expand plantation acreage to 2,000 acres are expected to significantly boost future revenue.

However, while the company’s operational outlook remains positive, its shares remain under suspension on the Nigerian Exchange Limited.

The Exchange halted trading in the company’s stock effective February 23, 2026, citing the need to preserve market integrity following an unusually sharp price surge.

In a notice to Trading License Holders and the investing public, NGX said the decision was taken in line with Rule 7.0 of the Rules on Suspension of Trading in Listed Securities.

According to the Exchange, the suspension was necessary “in the interest of the investing public and in accordance with SEC Rules.”

The regulatory action followed an extraordinary 772.36 per cent increase in the company’s share price within one month of listing.

The company debuted on the NGX Growth Board on January 20, 2026, listing 600 million ordinary shares at N1.81 per share through a listing by introduction, meaning no new capital was raised during the admission process.

At the time of listing, the company had an initial market capitalisation of about N1.086 billion.

However, the stock experienced a dramatic rally in the weeks that followed.

By February 20, the share price had surged to N17.36, representing a 772.36 per cent year-to-date gain and pushing the company’s market capitalisation to about N10.42 billion.

As of February, the stock remained priced above N17 per share, translating to a month-to-date gain of more than 314 per cent and a year-to-date return exceeding 855 per cent from its listing price.

The dramatic appreciation in the stock triggered regulatory scrutiny by the Exchange, prompting the suspension pending the outcome of an investigation into trading activities surrounding the shares.

Despite the regulatory review, the company said it would proceed with plans to reward shareholders from its improved earnings performance.

In its corporate disclosure, the company stated that a final dividend of 20 kobo per 50 kobo ordinary share, subject to withholding tax and shareholder approval, will be paid to investors whose names appear in the register of members at the close of business on March 16, 2026.

The company also proposed the bonus share issue on a one-for-one basis, which will be subject to approval at its forthcoming annual general meeting.

The Register of Shareholders will be closed between March 17 and March 20, 2026, while dividend payment is scheduled for April 29, 2026 through electronic transfer to shareholders who have completed e-dividend registration.

Based in Ogun State, Zichis Agro-Allied Industries Plc operates as an integrated agribusiness company with activities spanning multiple segments of the agricultural value chain.

Its operations include large-scale poultry and fish farming, egg production, oil palm plantation management and processing, as well as animal feed manufacturing through its in-house feed mills.

While the ongoing regulatory probe continues to limit trading activity in the company’s shares, its strong earnings growth and aggressive expansion plans suggest management is positioning the firm for further scale in Nigeria’s agricultural sector.

For investors, however, the immediate focus will remain on the outcome of the Exchange’s investigation, which will determine when trading in the company’s shares can resume.

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