Ellah Lakes acquires PKO mill equipment, surpasses 1,000 pigs in Edo State expansion

Ellah Lakes Plc has acquired the first batch of equipment for its palm kernel oil (PKO) mill, with installation set for completion by Q3 2026, enabling production of PKO and palm kernel cake (PKC) from its existing oil palm operations. Simultaneously, the company reported its pig population in Edo State has surpassed 1,000 as it scales livestock operations, with gilt sales now creating an additional revenue stream while an abattoir and cold-chain facility are planned for later expansion.

This dual-track expansion moves Ellah Lakes up the agricultural value chain—from primary production into higher-value processing—aiming to diversify revenue beyond volatile commodity prices. The PKO mill will extract more value from existing palm kernels (used in food, cosmetics, soaps), while PKC serves as animal feed. Livestock operations now provide near-term cash flow as plantation assets mature, supporting the company's integrated agribusiness model.

Financially, Q1 2026 revenue surged to N359.49 million (up 1,734% from N19.61 million in Q1 2025), with gross profit rising to N285.35 million. However, operating losses persist at N273.42 million—though this represents a 46.8% improvement from N514.18 million loss in Q1 2025—as administrative (N280.47m) and personnel (N252.25m) expenses still exceed gross profit. For investors monitoring Nigeria's agribusiness sector, this signals Ellah Lakes' strategic shift toward processing and value addition, but profitability remains contingent on securing PKO/PKC markets, managing livestock expansion costs, and converting revenue growth into sustainable cash flow.

SOURCE: https://nairametrics.com/2026/06/26/ellah-lakes-acquires-equipment-for-palm-kernel-oil-mill/