Transnational Corporation Plc Reports PBT of N45 Billion in Q1 2024

Translational Corporation Plc, also known as Transcorp, recently reported a positive profit before tax of N45 billion. The company attributed this to robust topline performance across its subsidiaries in the power and hotel sectors for Q1 2024.

The Group's unaudited Q1 results for the period ending March 31, 2024, showed that revenue rose to N88.6 billion from the corresponding year, which settled at N32.4 billion in 2023. The surge is said to be a product of the Group's implementation of its power strategy in the power businesses and an increase in occupancy rate from 75.0% to 82.0% in the hotel business.

Transcorp Power was reported to have contributed   N74.7 billion, which is  84% of Transnational Corporation Plc revenue. Its operating income increased by 479% from N8.5 billion in Q1 2023 to N49.1 billion in Q1 2024, while operating expenses increased by 40% year on year to N8.2 billion in Q1 2024, reflecting the impact of inflation and cost of operations.

Net finance cost rose by 14% to N3.7 billion in 2024 compared with the corresponding period, which settled at 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 when compared with a corresponding period, which settled at N2.9 billion in 2023, while profit after tax improved by 1,832% to N35.9 billion in Q1 2024 when compared with a corresponding period, which settled at N1.9 billion in Q1 2023.

The company's total assets increased by 8.3% from N530 billion in December 2023 to N574 billion in Q1 2024, while shareholders' funds increased by 20% 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, Dr. Owen Omogiafo, president/Group chief executive officer of Transcorp, said, "Our Q1 2024 results demonstrate Transcorp Group's resilience and commitment to excellence.

"Despite the challenges, we achieved growth across all major indices, focusing on operational efficiency at 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, "This robust achievement further demonstrates 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."

It is also said that Transnational Corporation is one of the few listed African conglomerates that is strategic with investmenting 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.