Haldane McCall Plc’s net profit rose 30.2 percent to N540.87 million in the nine months ended September 2026, even as operating activities consumed N5.95 billion in cash, highlighting a widening gap between reported earnings and cash generation.
The real estate company reported revenue of N2.90 billion for the nine months ended September 2026, up 59.4 percent from N1.82 billion in the corresponding period of 2025.
Cost of sales surged to N1.69 billion from N406.97 million, a more than fourfold increase. Gross profit fell 14.6 percent to N1.21 billion from N1.41 billion, indicating that a substantially larger share of revenue was consumed by the cost of delivering its business activities.
Haldane McCall’s operating profit rose 37.1 percent to N850.16 million, supported partly by other operating income of N348.8 million, compared with just N3.29 million a year earlier. After a finance cost of N30.67 million and income tax expense of N278.63 million, profit for the period increased 30.2 percent to N540.87 million from N415.52 million.
Haldane McCall Plc’s balance sheet has expanded to N32.73 billion, but a closer look at its third-quarter financial statements reveals a business navigating a costly property-development cycle, with rising construction inventories, a sharp increase in cost of sales and mounting pressure on operating cash flow.
The balance sheet shows where much of the company’s expansion is concentrated. Total assets increased 55.4 percent year-on-year to N32.73 billion, while property, plant and equipment climbed to N19.36 billion from N4.23 billion.
Inventories and work in progress also nearly doubled to N11.58 billion from N5.88 billion. The notes attributed the increase to N5.71 billion added to properties under construction during the period.
In the cash-flow statement, Net cash flow from operating activities was negative N5.95 billion, a massive decline compared with negative N191.35 million a year earlier, despite the increase in reported profit.
The real estate company recorded positive net cash flow from investing activities of N7.04 billion and negative cash flow from financing activities of N825.12 million. Cash and cash equivalents nevertheless increased to N543.79 million from N34.05 million a year earlier.
Haldane McCall ended the nine months with total liabilities of N7.22 billion and shareholders’ equity of N25.50 billion, and will be looking to convert its growing asset base and construction pipeline into stronger operating cash flows without letting rising project costs further erode profitability.
Haldane McCall Plc shares currently trade at ₦3.41 on the Nigerian Exchange (NGX), giving the company a market capitalisation of ₦10.6 billion. The stock has declined 14.75 percent year-to-date.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.