Transcorp Grows Revenue By 173% To N88.6bn In 1Q 2024

Transnational Corporation Plc (“Transcorp” or the “Group”), Nigeria’s leading, listed conglomerate with investment in the power, hospitality, and energy sectors, grew its revenue by 173 per cent in the first quarter of 2024 financial period.

The Group announced the Q1 financial results for the period ended March 31, 2024, in a statement on Wednesday.

In its Q1, 2024 unaudited results, Transcorp reported significant year-on-year growth, with revenue rising to N88.6bn from N32.4bn in 2023, representing a 173 per cent increase.

The impressive results are largely driven by a remarkable 209 per cent year-on-year revenue growth within the power business, highlighting significant strategic progress as part of Transcorp Group’s implementation of its integrated power strategy.

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

The results show substantial growth across all financial indicators, reinforcing its market leadership and strategic positioning.

 Highlight of Transcorp Group results:

• Q1 2024 Revenue was N88.6bn, a significant increase of 173%, compared to Q1 2023.
• Operating income increased by 479 per cent, from N8.5bn in Q1, 2023 to N49.1bn in Q1, 2024.
• Operating expenses saw an increase of 40 per cent year on year to N8.2bn in Q1 2024, reflecting the impact of inflation and cost of operations.
• Net finance cost increased by 14 per cent to N3.7bn in 2024 from N3.2bn in 2023 due to a slightly higher interest rate review in line with MPR.
• Profit before tax from ordinary business of the Group surged by 1110 per cent, amounting to N34.7bn in Q1 2024, compared to N2.9bn in Q1, 2023 in the same period last year.
• Profit before tax inclusive of extra ordinary income was N45.7bn in 2024 compared to N2.9bn in 2023.
• The Group recorded extra ordinary income of N11bn during the period from the realised gain from the sale of shares.
• Profit after Tax including the extra ordinary income improved 1832 per cent year-on-year to N35.9bn in Q1 2024, compared to N1.9bn 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 N530bn in December 2023 to N574bn in Q1 2024 due to the increase in operational activities.
• Shareholders’ funds increased by 20 per cenet from N187bn in December 2023 to N224bn at the end of Q1 2024 due to profit accreted to retained earnings.

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

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.