Leading conglomerate Transactional Corporation of Nigeria Plc recorded a 123 percent revenue increase in just nine months, with the electricity operational segment accounting for 83.7 percent of overall earnings during that time.
Transcorp Hotels Plc and Transcorp Power Plc are both owned by the corporation.
Its nine-month financial report, which is available on the Nigerian Exchange Limited (NGX), shows that its after-tax earnings increased from N22.7 billion to N95.9 billion during the same period in 2023.
In the first nine months of 2024, the Group’s revenue increased by 79.7% to N297.7 billion, the largest increase in ten years, from N128 billion in the same period last year.
In the third quarter (Q3) of 2024, sales increased by 90.8 percent from N45.9 billion to N122.2 billion on a quarter-over-quarter basis.
The Transcorp Group’s president and group CEO, Owen Omogiafo, credited the group’s performance to its emphasis on innovation, operational efficiency, and capacity to handle a challenging market climate.
“We will prioritize improving operational efficiency, investing in the high-growth sector, and providing long-term value to our shareholders as the year draws to a close,” she stated.
According to a deeper breakdown of the operating categories, the company’s electricity segment contributed the most in the nine months of 2024, increasing by 162.3 percent to N249.2 billion from N98.2 billion.
While its corporate centre operational section expanded by 89.2 percent to N26.1 billion from N10 billion in 2023, the hospitality segment grew by 47.4 percent to N48.5 billion from N29.9 billion.
The company’s post-tax earnings increased from N22.7 billion in 2023 to N75.9 billion, a 234.3 percent increase.
Natural and fuel expenses accounted for 84.1 percent of the conglomerate company’s total cost of sales during the nine months of 2024, which increased by 88.4 percent to N164.8 billion from N63.8 billion during the same period in 2023.
The period’s administrative costs increased by 31% to N32 billion from N23.4 billion the same time the previous year.
In the first nine months of 2024, Transcorp Group’s net finance costs increased by 11.7 percent to N11.8 billion from N10.5 billion.
Loan interest costs decreased from N13.5 billion to N12.7 billion. Likewise, the foreign exchange loss on borrowings decreased from N6.1 billion to N3.5 billion, a 42.6 percent decrease.
While cash and cash equivalents, which indicate the worth of a business’s assets that are cash or can be turned into cash, increased from N13.4 billion to N57.2 billion in the first nine months of 2024, the company’s total assets increased from N358.26 billion to N683.3 billion.
Operating activities earned the corporation N31.6 billion, a 65.2% decrease from the N52.2 billion earned in the first nine months of 2023.
In the first half of 2022, the company reported a negative cash flow of N-187.9 million, which was used for investing operations because of the significant cash loss during that time.
