Consolidated Hallmark Holdings Plc has released its earnings and cashflow forecast for the first quarter of 2026, projecting a significant rise in profitability on the back of robust revenue growth across the Group.
The forecast, endorsed by Group CEO Eddie Efekoha and Group CFO Babatunde Daramola, covers the period ending 31 March 2026.
According to the filing, gross revenue is expected to rise to ₦15.62 billion, a sharp increase from ₦2.64 billion recorded in the corresponding period of 2025.
The Group did not forecast any fair value adjustments or foreign currency gains for the quarter.
Total net expenses for the period are projected at ₦11.72 billion, reflecting operating expenses of ₦9.24 billion, management expenses of ₦2.28 billion, and finance costs of ₦205.21 million. These cost elements leave a projected profit before tax of ₦3.90 billion, compared to ₦995.25 million in the prior year.
Taxation for the period is estimated at ₦1.81 billion, resulting in profit after tax of ₦2.09 billion, more than triple the ₦656.87 million reported in Q1 2025.
The entire net income for the quarter is attributable to the owners of the parent company, with no allocation to non-controlling interests.
Operating Cashflow Strengthens Despite Higher Outflows
The Group expects to generate strong operating cashflow in the quarter, forecasting:
-
₦17.26 billion net cash from operations,
-
₦1.85 billion commission received,
-
₦2.27 billion commission paid,
-
₦2.73 billion employee-related cash payments, and
-
₦6.38 billion other operating cash expenses.
Companies income tax payments are projected at ₦5.44 billion, bringing net cash provided by operating activities to ₦2.29 billion, up from ₦1.02 billion in the same period last year.
Investment Activities Reflect Aggressive Portfolio Adjustments
Forecast investing cashflows show significant activity across the Group’s portfolio. Consolidated Hallmark expects:
-
₦848.08 million outflow for property, plant and equipment,
-
₦18.04 billion outflow for investment acquisitions,
-
₦10.88 billion in investment income received, and
-
₦292.24 million in other income received.
Overall, investing activities are expected to yield a net inflow of ₦7.71 billion, compared to ₦1.12 billion in the prior year.
Financing Position Supported by New Borrowings
The Group anticipates ₦6.04 billion inflow from new borrowing, with no dividend payments or principal repayments forecast for the period. Interest payments are not projected for Q1 2026.
As a result, net cash provided by financing activities stands at ₦6.04 billion, compared to ₦86.95 million in Q1 2025.
Cash Position Remains Strong
The Group expects a net increase of ₦622.48 million in cash and cash equivalents during the quarter. Opening cash balance of ₦16.23 billion is forecast to rise to ₦16.85 billion by 31 March 2026.
Outlook
The earnings forecast indicates a strong first-quarter performance for Consolidated Hallmark Holdings Plc, reflecting accelerated revenue growth and solid cash generation across the Group.
The Company’s liquidity position remains resilient despite rising operational and investment outflows.
