Transnational Corporation (Transcorp) Plc, reported growth in its profit before tax to N45 billion, driven by robust topline performance across the power and hotel subsidiaries for first quarter (Q1) of 2024.
The conglomerate unaudited Q1 results for the period ended March 31, 2024 revealed revenue rising to N88.6 billion from N32.4 billion in 2023, reflecting the significant progress in the Group’s implementation of its integrated power strategy in the power businesses and an increase in occupancy rate from 75.0 per cent to 82.0 per cent in the hotel business.
Specifically, the power businesses contributed a combined N74.7 billion (84 per cent of the Group’s total revenue). Operating income increased by 479 per cent from N8.5 billion in Q1 2023 to N49.1 billion in Q1 2024, while operating expenses saw an increase of 40 per cent year on year to N8.2 billion in Q1 2024, reflecting the impact of inflation and cost of operations.
Net finance cost increased by 14 per cent to N3.7 billion in 2024 from N3.2 billion in 2023 due to a slightly higher interest rate review in line with MPR.
Profit before tax was N45.7 billion in 2024 compared to N2.9 billion in 2023, while profit after tax improved 1,832 per cent to N35.9 billion in Q1 2024, compared to N1.9 billion in Q1 2023
On the balance sheet, total assets grew by 8.3 per cent from N530 billion in December 2023 to N574 billion in Q1 2024, while shareholders’ funds increased by 20 per cent from N187 billion in December 2023 to N224 billion at the end of Q1 2024 due to profit accreted to retained earnings.
Speaking on the results, president/Group chief executive officer of Transcorp, Dr. Owen Omogiafo said “our Q1 2024 results demonstrates Transcorp Group’s resilience and commitment to excellence.
“Despite the challenges, we achieved growth across all major indices, focusing on operational efficiency at both our power plants, and maximising opportunities within our hospitality business, showing our ability to adapt and succeed in changing markets. We will continue to deliver sustainable growth, operational efficiency, and value for our shareholders,” he said.
Omogiafo added that, “this robust achievement is a further demonstration of the Group’s strategic focus and effective execution. Transcorp is dedicated to its transformation agenda, emphasising sustained growth and a relentless pursuit of long-term value for shareholders.”
Transnational Corporation is a listed African conglomerate, with strategic investments in the power, hospitality, and energy sectors. Driven by its mission to improve lives and transform Africa, Transcorp has built a longstanding reputation for sector transformation, operational excellence, and exceptional financial performance, delivering value to its shareholders.