• Thursday, July 25, 2024
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Transcorp records revenue growth amid economic headwinds

Deconstructing the Transcorp equity deal of Otedola, Elumelu

Despite macroeconomic challenges, Transnational Corporation Plc (Transcorp) was able to deliver impressive growth figures on all the parameters of assessment, this is according to the company’s financial results for the full year ended December 31, 2022.

The company which has a considerable presence in the Hospitality, Power, and Oil and Gas sectors, recorded growth in its profit before tax, which rose by 8 percent to N30.3 billion compared to N27.9 billion in December 2021.

The conglomerate saw a 7 percent increase in its Power investments, despite the challenges faced in the year from the issues with gas supply, off the diminished Oil & Gas production in the country in 2022.

The hospitality sector followed with a strong showing, achieving a record revenue of N31.4 billion and profit before tax of N4.5billion. These achievements have been made within a challenging operating environment characterised by foreign exchange volatility, high cost of production and rising inflation.

Read also: Zenith Bank grows gross earnings by 24% to N945.5b in 2022

Apparently, the Group’s total revenue and operating profit also experienced significant growth, rising by 21 percent from N111.2 billion in December 2021 to N134.7 billion in the period under review, and from N38.5 billion in December 2021 to N46.7 billion in December 2022, respectively.

Operating expenses for the year ended December 2022 stood at N23.4 billion, representing an increase of 24 percent compared to N18.8 billion recorded in the same period of 2021.

The results showed that total assets increased by 6 percent from N416 billion in December 2021 to N442.7 billion in December 2022, primarily due to additional investment in the recovery of the power plants and investment in financial assets. Shareholders’ Funds rose to N154.8 billion, representing a 6 percent year-on-year increase from N146.3 billion recorded in the same period of 2021.

Speaking about the company’s success, Owen Omogiafo, the President/Group Chief Executive Officer, said that the success recorded in the report is a result of the robustness of the company’s business model, which remains prudent and nimble across its operations.

She said “As we reflect on our achievements, we take pride in the improved performance of our Group. Looking to the future, we will continue to focus on efficiency and cost optimisation, ensuring that we remain agile and responsive to the market while delivering value to our stakeholders.”