Haldane McCall Plc's net profit climbed 30.2 percent to N540.87 million in the nine months ended September 2026, yet the company faced a widening gap between reported earnings and the cash it generated from day-to-day operations. Revenue jumped 59.4 percent to N2.90 billion from N1.82 billion in the same period a year earlier, but this expansion came at a cost. The cost of sales more than quadrupled to N1.69 billion from N406.97 million, causing gross profit to fall 14.6 percent to N1.21 billion, indicating that a much larger portion of revenue went towards delivering the company's business activities.
Operating profit rose 37.1 percent to N850.16 million, supported by other operating income of N348.8 million, a sharp increase from N3.29 million a year earlier. After accounting for finance costs of N30.67 million and income tax of N278.63 million, profit for the period grew to N540.87 million from N415.52 million. However, operating activities consumed N5.95 billion in cash, a dramatic deterioration from a cash outflow of N191.35 million in the corresponding period of 2025, revealing the strain on cash generation despite rising reported profits.
The company's balance sheet expanded significantly, with total assets climbing 55.4 percent year-on-year to N32.73 billion. Property, plant and equipment surged to N19.36 billion from N4.23 billion, while inventories and work in progress nearly doubled to N11.58 billion from N5.88 billion, with N5.71 billion added to properties under construction during the period. The real estate firm is navigating a costly property-development cycle marked by rising construction inventories and mounting pressure on cash flow. Haldane McCall ended the nine months with total liabilities of N7.22 billion and shareholders' equity of N25.50 billion.
On the Nigerian Exchange, Haldane McCall shares currently trade at N3.41, giving the company a market capitalisation of N10.6 billion. The stock has declined 14.75 percent year-to-date. For savers and investors, the company's rising profitability contrasts sharply with its deteriorating operating cash flow, suggesting it must convert its growing asset base and construction pipeline into stronger cash generation without allowing rising project costs to further erode margins.