Transnational Corporation of Nigeria (Transcorp) recorded a 63.1 percent loss in profit as a result of incurring a loss in financing activities owing to foreign exchange, BusinessDay’s findings showed.
The firm’s profit before tax stood at N2.9 billion, while profit for the period was recorded at N1.9 billion for the first three months of the year from N5 billion recorded for the same period last year.
The conglomerates incurred N2.4 billion in foreign exchange loss, recorded in the first three months from N0.503 trillion recorded for the same period of last year.
Gross profit also saw a decline of 6.6 percent in the first three months to N14.2 billion from N15.2 billion recorded for the same period of last year.
Revenue recorded N32.4 billion compared to the N31.4 billion recorded in the first quarter of last year.
In the first month of 2023, the cost of sales increased to N18.2 billion, marking a 12.4 percent rise compared to the N16.1 billion recorded for the same period in 2022.
This increase was attributed to higher expenses on natural gas, fuel, food, and beverage during the first quarter of the year.
There was a 40 percent increase in other income, rising to N238 million in the first quarter from N170 million in the corresponding period of the previous year.
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Transcorp’s operating profit declined to N8.5 billion from N10.1 billion recorded in the first three months of 2022, taking a battering from a jump in administrative expenses from N5.2 billion to N5.9 billion.
The group recorded N9.5 billion as its cash and cash equivalents at the end of the period, a 25.78 percent decline from N12.8 billion recorded for the same period last year.
In the first three months of the year, net cash generated from operations increased to N18.9 billion from N5.5 billion recorded in the same period last year.
Net cash flows used in investing activities increased to N12.74 billion record in the first quarter of 20223 from N1.40 billion recorded in the same quarter of last year as a result of the purchase of property, plant and equipment which amounted to N11.9 billion from N1.3 billion.
Net cash flows used in financing activities increased to N5.56 billion in the first quarter of 2023 from N4.97 billion recorded in the same period of last year, owing to interest paid which amounted to N4 billion from N3.54 billion, and the dividend paid which also amounted to N813 million from N406 million recorded in the first quarter of 2022.
Total equity stood at N156.9 billion in the first three months of the year, from N154.7 billion recorded in the same period of last year, while net equity and liabilities amounted to N464.47 billion recorded in the first quarter of the year from N442.7 billion recorded in the same quarter of last year.
Last Thursday, the firm announced the acquisition of 5.5 per cent interest in the company by Nigeria’s businessman Femi Otedola.
“The Company welcomes this expression of confidence in its leadership and management as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism,” Transcorp said in a regulatory filing.
Otedola, who now holds 2.2 billion shares, comes next to UBA Nominees Limited in the ownership pecking order of the conglomerate, whose businesses encompass energy, oil and gas, and hospitality.
The action clears the air around speculations that emerged last week about a substantial share purchase by the energy magnate, the high point being a single-day trading of 1.6 billion shares last Tuesday.
Transcorp’s shares gained 78.8 per cent in the nine days between then and Thursday.
