December 10, (THEWILL) — Ellah Lakes Plc has reported a dramatic jump in revenue for the third quarter ended April 30, 2025, driven by expanded palm-oil operations, even as the company remained in the red due to rising operational and expansion-related costs.
The agribusiness company grew revenue to ₦68.73 million, up sharply from just ₦0.416 million in the corresponding quarter of 2024, making it one of its greatest top-line improvements since pivoting to tree-crop agriculture.
But despite the revenue rebound, Ellah Lakes posted a net loss of ₦238.17 million, slightly worse than the ₦215.16 million loss recorded a year earlier. The company attributed the persistent losses to intensified operational spending, expansion costs, and early-stage development expenses tied to its palm-oil and agro-processing strategy.
Earnings per share remained negative, with a basic loss per share of ₦0.12, compared to ₦0.11 in Q3 2024.
Although revenue improved, Ellah Lakes’ operating cash position remained strained. For the nine months, the company recorded a negative operating cash flow of ₦286.14 million, signalling continued cash burn as it scales up production and infrastructure.
The company said the operating cash deficit reflects investments in plantation development, processing capacity, and acquisition-related activity.
A major highlight of the quarter was the company’s strengthened balance sheet following new equity injections.
Shareholders’ fund rose to ₦22.66 billion, boosted by over ₦3 billion in fresh equity (share capital and premium).
Total assets increased to ₦31 billion, up from ₦24.55 billion in 2024.
Borrowings were significantly reduced, dropping from ₦1.37 billion to ₦610 million, reflecting improved leverage and capital structure.
The recapitalisation appears to have positioned the company more firmly for aggressive expansion and debt-light growth.
Looking beyond the quarter, Ellah Lakes is pursuing one of the most ambitious capital-raising and expansion programs in Nigeria’s agribusiness sector.
The company is preparing a ₦235 billion public offer, intended to fund large-scale plantation expansion, processing infrastructure, and acquisitions. One such acquisition involves Sunshine Ltd, a move expected to expand the company’s footprint and diversify its agro-value-chain operations.
Ellah Lakes projects that these initiatives could lift annual revenue above ₦24 billion within the next business year, a huge leap from its current quarterly run rate.
While Ellah Lakes is positioning itself as a major player in Nigeria’s tree-crop value chain, the company remains in early-stage, cash-negative territory. The combination of rapid expansion, continued operating losses, and negative cash flow presents risks that investors and regulators will be monitoring closely.
Still, with a stronger equity base, reduced debt burden, and clear operational scaling underway, the company appears committed to a long-term growth strategy that hinges on its ability to convert new assets and acquisitions into sustainable revenue streams.
Ogochukwu Onwaeze
