Ellah Lakes Plc has reduced its total liabilities by 93.6 per cent after converting N7.08 billion in directors’ loans into equity, and significantly reducing its leverage as the agribusiness company positions for its next phase of commercial expansion.
The debt-to-equity conversion reduced the company’s liabilities to N504.66 million as of June 30, 2026, from N7.83 billion at the end of December 2025, while shareholders’ equity rose 21.1 per cent to N24.75 billion, according to its unaudited half-year financial results.
As part of the restructuring, share capital rose to N3.20 billion from N1.93 billion, while share premium increased to N14.03 billion from N8.20 billion following the conversion of the outstanding directors’ loans into equity.
The exercise also reduced the company’s debt-to-assets ratio to 2.0 per cent from 27.7 per cent and lowered its debt-to-equity ratio from 38.3 per cent to 2.0 per cent, significantly improving its leverage position.
The restructuring comes as Ellah Lakes seeks to strengthen its financial position while scaling investments across its integrated agribusiness operations, including oil palm processing and livestock production.
Despite the stronger balance sheet, the company remained loss-making during the first half of the year. Operating loss stood at N782.63 million, reflecting higher operating expenses associated with expanding farm operations, processing activities, logistics, personnel and other support functions.
Revenue, however, climbed to N533.86 million, driven by stronger commercial activity across oil palm sales, livestock operations and palm kernel-related products.
Commenting on the results, Chief Executive Officer Chuka Mordi said the first half of 2026 represented a significant step in strengthening the company’s operational and financial foundations.
“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,” Mordi said.
He said the company’s immediate priorities include improving production reliability, restoring stronger crude palm oil mill performance, completing the installation of new processing equipment and expanding value addition across the palm value chain.
Beyond processing, Ellah Lakes said it has expanded its livestock business to more than 1,000 pigs and commenced the sale of breeding gilts. The company also plans to install an abattoir and cold-chain facility as part of efforts to diversify revenue sources and deepen integration across its agribusiness operations.
