Zichis Agro-Allied targets US$360K monthly revenue after feed mill upgrade and farm expansion

NIGERIA – Newly listed agro-allied company Zichis Agro-Allied Industries Plc is accelerating its expansion strategy, with management projecting monthly revenue potential of about N540 million (US$360,000) following a major upgrade of its animal feed production line and the rollout of a 2,000-acre farm estate.

The company said the growth plan is anchored on industrial-scale agriculture, expanded processing capacity, and vertical integration across its agro-value chain, aimed at strengthening earnings visibility and long-term shareholder value.

Speaking to financial journalists on Tuesday, May 19, 2026, Executive Director for Finance & Strategy, Chris Ogbaisi, said the upgraded feed mill is already operational and significantly increases production capacity.

“This key operations upgrade translates to approximately 40,000 bags of animal feed per month, with each bag priced between N13,500 (US $9) and N14,000 (US $9.3),” Ogbaisi said.

He added that installed capacity has increased from 2 tonnes per hour to 5 tonnes per hour, enabling higher throughput and improved operational margins. 

The company estimates monthly output at about 1,200 tonnes based on 12 operating cycles across 20 working days.

At full utilisation, management believes the feed segment alone could generate monthly turnover exceeding N540 million (US$360,000), driven by sustained demand in Nigeria’s livestock and poultry sectors.

“At full production capacity, the operation is expected to generate a projected monthly turnover exceeding N540 million (US$360,000),” Ogbaisi added.

He noted that the company’s broader agro-diversified portfolio, including poultry and other farming units, will further support revenue growth and risk diversification across its operations.

Beyond processing, Zichis Agro-Allied is expanding upstream into primary production. Ogbaisi confirmed that the company has commenced clearing a 2,000-acre farm estate aligned with the current planting season.

He said the development is intended to secure raw material supply for the feed mill while reducing dependence on external sourcing, describing it as part of a wider integration strategy linking farming and industrial feed production.

Regarding ownership, Ogbaisi confirmed that Managing Director Anthonia Akabusi retains a stake of more than 50% in the company, despite recent share movements disclosed to the Nigerian Exchange (NGX). 

He also cautioned investors against misinformation.

“Shareholders and prospective investors should be cautious of social media narratives that attempt to twist facts and figures,” he said.

Zichis is also awaiting regulatory approval from the Securities and Exchange Commission for a previously shareholder-approved capital raise.

The company’s stock has seen sharp volatility since its January 20, 2026, listing, when it debuted at N1.81 (US$0.0012) per share. 

It later surged to N40.35 (US$0.027) on May 12 before easing to N29.13 (US$0.019) on May 19, reflecting both strong investor interest and profit-taking pressure.

Market activity has remained high, with over 623 million shares traded in the past three months, valued at N8.52 billion (US$5.7 million).

Analysts at GTI Asset Management said selective accumulation could return if sentiment stabilises, with the stock remaining closely watched as investors assess whether operational expansion can sustain earnings growth momentum.

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