Consolidated Hallmark Holdings eyes ₦2.09bn profit after tax in Q1 2026

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Chuks Udo Okonta

Consolidated Hallmark Holdings Plc, the highest return on equity company in Nigeria, has projected a significant rise in profitability on the back of robust revenue growth across the Group, anticipating N2.09bn Profit After Tax (PAT) in Q1 2026

The firm in a released earnings and cashflow forecast for the first quarter of 2026, which was endorsed by Group Chief Executive Officer Eddie Efekoha and Group Chief Financial Officer Babatunde Daramola, covers the period ending March 31, 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.

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.

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.

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.

On the 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.

Consolidated Hallmark Holding Plc, recently bagged the 2025 Highest Return on Equity Award presented by Pearl Awards.