Transactional Corporation of Nigeria Plc, a leading conglomerate, reported 123 percent revenue growth in nine months, with the power operating segment contributing 83.7 percent of the total earnings over the period.
The conglomerate is the parent company of Transcorp Power Plc and Transcorp Hotels Plc.
According to its nine-month financial report seen on the Nigerian Exchange Limited (NGX), its after-tax profit grew to N95.9 billion from N22.7 billion reported in the same period of 2023.
The Group’s revenue grew by 79.7 percent to N297.7 billion in nine months of 2024, from N128 billion in the corresponding period last year, the highest in 10 years.
On a quarter-on-quarter basis, revenue was up by 90.8 percent to N122.2 billion in the third quarter (Q3) of 2024 from N45.9 billion.
Owen Omogiafo, president/group CEO of Transcorp Group, attributed the performance to the group’s focus on innovation, operational excellence, and ability to navigate a complex market environment.
“As we approach the year-end, we will focus on enhancing operational efficiency, investing in the high growth sector, and delivering long-term value to our shareholders,” she said.
A further breakdown of the operating segments shows that the company’s power segment contributed the bulk by 162.3 percent to N249.2 billion in nine months of 2024 from N98.2 billion.
Read also: Transcorp Hotels grow revenue by 67% to N48.49bn in Q3, 2024
Hospitality segment grew by 47.4 percent to N48.5 billion, from N29.9 billion, while its corporate centre operating segment grew by 89.2 percent to N26.1 billion from N10 billion in the same period of 2023.
The company’s after-tax profit surged by 234.3 percent to N75.9 billion from N22.7 billion in 2023.
The conglomerate company’s cost of sales grew by 88.4 percent to N164.8 billion in nine months of 2024, from N63.8 billion in the same period of 2023, with natural and fuel costs claiming 84.1 percent of the total cost of sales in the period.
Administrative expenses in the period were up by 31 percent to N32 billion,from N23.4 billion in the corresponding period of last year.
Transcorp Group recorded a slight increase in net finance costs by 11.7 percent to N11.8 billion in nine months of 2024 from N10.5 billion.
Interest expenses on loans declined to N12.7 billion, from N13.5 billion. Similarly, foreign exchange loss on borrowings declined by 42.6 percent to N3.5 billion from N6.1 billion.
Total assets recorded by the company grew to N683.3 billion from N358.26 billion while cash and cash equivalent which shows the value of a company’s assets that are cash or can be converted into cash amounted to N57.2 billion in nine months of 2024 from N13.4 billion.
The company generated N31.6 billion from operating activities, a 65.2 percent decline from the N52.2 billion seen in nine months of 2023.
The conglomerate reported a negative cash flow used in investing activities of N-187.9 million in the first half of 2022 due to the large cash outflow in the period.
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