Zichis Agro-Allied Industries Plc reported a pre‑tax profit of N478.7 million for the first half of 2026, a jump of 448.6% from the same period a year earlier, according to its unaudited financial statements filed with the Nigerian Exchange on July 28.
Revenue and earnings surge
Revenue climbed 285.4% to N910.5 million, while gross profit rose 415.2% to N619.6 million. After‑tax profit surged 543.1% to N457.0 million. Basic earnings per share increased 216.7% to 38 kobo, up from 12 kobo a year earlier.
Cost of sales grew 150.7% to N290.9 million, but the rise was outpaced by revenue growth, allowing gross margins to expand. Administrative expenses, however, jumped 326.8% to N140.9 million, representing about 15.5% of revenue.
Product mix drives growth
Egg sales remained the largest revenue source, generating N288.95 million or 31.74% of total sales. Feed‑mill products contributed N206.28 million (22.66%) and palm oil added N193.65 million (21.27%). Palm oil showed the steepest increase, soaring 984.85% from N17.85 million a year earlier.
Feed‑mill output rose 440.85%, chicken revenue grew 382.25% to N150.70 million, and fish sales increased 176.04% to N70.89 million.
Together, eggs, feed‑mill items and palm oil accounted for 75.66% of H1 2026 revenue, highlighting their role as the primary growth engines.
Small farms benefit from cheaper feed.
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For many small‑scale farmers, the rapid expansion of Zichis’s feed‑mill line means more affordable feed options, potentially lowering production costs and improving profitability at the farm level.
Balance‑sheet expansion
Total assets rose 283.4% to N3.60 billion, driven largely by a new long‑term debt facility of N2.00 billion. The company carried no long‑term debt in H1 2025, so liabilities increased sharply to N2.06 billion, or 57.2% of assets.
Shareholders’ equity grew 70.2% to N1.54 billion, financing roughly 42.8% of total assets. Property, plant and equipment doubled to N1.41 billion, reflecting investments in cages, feed‑mill machinery and other biological assets.
Cash balances surged to N1.15 billion from just N4.80 million a year earlier, a change largely attributable to the new borrowing. Inventories expanded 463.5% to N669.39 million.
Market reaction and outlook
After listing on the NGX Growth Board at N1.81 per share in January 2026, Zichis’s share price closed at N25.00 on July 28, a 7.2% decline from the prior session but still up 1,281.22% from its IPO price. The stock ranks second on the exchange for year‑to‑date price appreciation.
Analysts expect the strong earnings to influence trading in the coming sessions, though the rise in administrative costs and the new debt obligations introduce caution about future cash‑flow pressures.