Transcorp’s Q1 Revenue Grows 173% To 88.6bn

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Transnational Corporation Plc (Transcorp Group), has reported increase earnings of N88.6 billion in its first quarter in 2024, a 173 per cent hike from N32.4 billion recorded in 2023.

Transcorp is a Nigerian conglomerate with investments in the Power, Hospitality, and Energy sectors.

In the first quarter unaudited released on the Nigerian Exchange Limited, the company noted that it was largely driven by a notable 2, 209 per cent year-on-year revenue growth within the power business, highlighting significant progress as part of the implementation of its integrated power strategy.

The hospitality business of the company recorded 68 per cent year-on-year growth in revenue, driven by an increase in occupancy rate from 75 per cent to 82 percent compared to the previous year.

Highlight of Transcorp Group results show its operating income increased by 479 per cent, from N8.5 billion in Q1 2023 to N49.1 billion in Q1 2024.

The state of the economy also pushed up the operating expenses by 40 per cent, rising to N8.2 billion in Q1 2024, and reflecting the impact of inflation and cost of operations just as net finance cost increased by 14 per cent to N3.7 billion in 2024 from N3.2 billion in 2023. This is due to a slightly higher interest rate review in line with MPR.

On the positive side, profit before tax from ordinary business of the Group  surged by 1, 110 per cent, amounting to N34.7 billion in Q1 2024, compared to N2.9 billion in Q1 2023 in the same period last year.

In the same vein, profit before tax inclusive of income was N45.7 billion in 2024 compared to N2.9 billion in 2023.

The Group recorded positive income of N11 billion during the period from the realised gain from the sale of shares while profit after Tax including its income improved 1, 832 per cent year-on-year to N35.9 billion in Q1 2024 from N1.9 billion in Q1 2023 in the same period last year.

Earnings per share of the Group was N61.12k in Q1 2024, compared to N2.58k 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 due to the increase in operational activities.

The result indicate that the shareholders’ funds increased by 20 per cent from N187billion in December 2023 to N224 billion at the end of Q1 2024 due to profit accreted to retained earnings.

In response to the results, Owen D. Omogiafo, President/Group Chief Executive Officer of Transcorp, stated, “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.”