Transnational Corporation Plc (Transcorp) has published its financial results for the year ending December 31, 2024, reporting a pre-tax profit of N136.6 billion.
This marks an impressive 132.41% increase from the N58.8 billion reported the previous year, buoyed by a substantial rise in revenue.
The group recorded total revenue of N407.9 billion, a 107.07% increase from N196.9 billion in 2023, with ‘power’ contributing a significant 82.8% of the total.
- However, revenue for the company experienced a 10.08% decline, dropping from N16 billion the previous year to N14.4 billion in 2024.
- Pre-tax profit for the company surged to N18.4 billion, representing an impressive 90.74% increase, while profit from core operations climbed to N25.1 billion, a notable rise of 64.52% from N15.2 billion.
Total assets for the group surged to N751.5 billion, reflecting a 41.82% increase from the previous year’s N529.9 billion. Additionally, retained earnings grew by 62.96%, reaching N112.3 billion, up from N68.9 billion.
- Total comprehensive income attributable to the owners stood at N55.4 billion, with N42.5 billion for non-controlling interests, totaling N97.9 billion.
- In the previous period, the income was N41.1 billion, comprising N25 billion for owners and N16 billion for non-controlling interests.
Transcorp also proposed a Final Dividend of 60 kobo per ordinary share, pending shareholder approval and applicable withholding tax, to be paid to shareholders registered by March 27, 2025.
Combined with the Interim Dividend of 40 kobo paid on August 7, 2024, the Total Dividend for the 2024 financial year will amount to N1.00 per ordinary share.
Commenting on the results, the President and Group Chief Executive Officer of Transcorp, Mrs. Owen D. Omogiafo, stated, “Our 2024 financial performance reflects the sustainable value creation strategy of Transcorp Group. We have consistently recorded impressive growth across all indices year on year, despite the challenging macroeconomic environment.”
Key highlights (2024 vs. 2023)
- Revenue: N407.9 billion, +107.07% YoY
- Cost of sales: N212.2 billion, +141.62% YoY
- Gross profit: N195.6 billion, +79.27% YoY
- Other gains: N5.3 billion, +84.21% YoY
- Administrative expenses: N53.9 billion, +100.15% YoY
- Operating profit: N149 billion, +83.00% YoY
- Finance income: N1.8 billion, +27.38% YoY
- Finance cost: N18.5 billion, -25.88% YoY
- Pre-tax profit: N136.6 billion, +132.41% YoY
- Post-tax profit: N94 billion, +188.30% YoY
- Total assets: N751.5 billion, +41.82% YoY
- Retained earnings: N112.3 billion, +62.96% YoY
Commentary
Transcorp reported a substantial increase in revenue, rising by 107.07% to N407.9 billion from N196.9 billion in the previous year.
- Revenue from ‘power’ made up 82.8% of this total at N337.7 billion, while ‘hospitality’ contributed 17.2%, amounting to N70.1 billion.
However, the group’s cost of sales also increased significantly, up 141.62% to N212.2 billion compared to N87.8 billion last year.
- Natural gas and fuel costs accounted for 80.1% of total costs, reaching N170 billion.
Despite the higher costs, the group reported a gross profit of N195.6 billion, which is a 79.27% increase from N109.1 billion announced in the prior year.
The company achieved other gains totaling N5.3 billion, reflecting an 84.21% increase from the previous year, primarily due to changes in the fair value of investment properties and dividend income on equity securities, which contributed N2.3 billion and N2 billion, respectively.
- Conversely, administrative expenses rose sharply by 100.15% to N53.9 billion, up from N26.9 billion, driven by higher employee costs, management fees, license renewals, office expenses, and energy costs.
On a more favorable note, operating profit grew by 83%, rising from N81.4 billion the previous year to N149 billion.
- Finance income also rose by 27.38% to N1.8 billion compared to N1.4 billion the previous year, with the majority coming from interest on loans, which accounted for 98.7% of the total.
- The group reduced finance costs from N25 billion the prior year to N18.5 billion in 2024.
In summary, the company’s pre-tax profit stood at N136.6 billion, which is a 132.41% increase from N58.8 billion reported the previous year. Post-tax profit experienced significant growth as well, climbing by 188.30% to N94 billion, compared to N32.6 billion in the previous year.
Asset position
The company’s total assets increased by 41.82% to N751.5 billion, compared to N529.9 billion reported the previous year.
- Non-current assets rose to N406.1 billion, up from N355.6 billion, with property, plant, and equipment comprising N310.4 billion of that total.
- Current assets also saw growth, reaching N345.4 billion, compared to N171.3 billion last year. Trade and other receivables represented the largest portion of current assets at N320.6 billion.