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Transcorp reports 39% increase in H1 pre-tax profit to N18.5bn

Tuedor-Matthews, Odita join Transcorp Power’s board

Transnational Corporation Plc (Transcorp Group) has released its financial results for the first half (H1) of the year ended June 30, 2023, recording commendable growth across all its major indices.

In its financial report filed with the Nigerian Exchange (NGX), Transcorp reported an 39 percent growth in profit before tax to N18.5 billion in H1 2023, from N13.4 billion in H1 2022. Interest Cost declined by 9percent to N6.6 billion in June 2023 from N6.1 billion in the same period under review.

The Group achieved an impressive revenue of N82.1 billion in H1 2023, compared to N62.9 billion in H1 2022, marking a substantial 31percent growth year-on-year while operating income also grew by 46percent to close at N29.9 billion as of June 2023, compared to N20.5 billion in June 2022.

The Group’s total revenue for the half year ended June 30, 2023, was N82.1 billion, compared to N62.9 billion in June 30 2022, signifying a 31percent increase. Operating Income grew by 46percent from N20.5 billion in June 2022 to N29.9 billion in June 2023. Operating expenses for the period ended June 30, were N15.9 billion, an increase of 40percent compared to N11.3 billion of the corresponding previous year.

Transcorp continues to maintain a strong balance sheet, with Total Assets rising to N495.3 billion, representing a 12percent increase over the N442.7 billion recorded at the end of June 2022, due to the increase in Debt and equity securities (+61percent) and Trade and Other Receivables (+40percent) which cushioned the effect of the decline in Inventories (+68percent).

Transcorp shareholders’ funds remained very strong at N176.3 billion up from N154.8 billion recorded in the same period in 2022, further reinforcing the company’s commitment to delivering long-term value to its shareholders.

Commenting on the result, Owen D. Omogiafo, president/group Chief Executive Officer, Transcorp said that the Group continues to sustain growth and improvement, showing resilience despite, a challenging operating environment, characterised by foreign exchange volatility, gas supply constraints, and rising inflation, amongst others.

She said, “The first-half financial results affirm our dedication to driving innovation and seizing opportunities for sustainable growth, positioning Transcorp as a trailblazer in the Nigerian business realm. In spite, of the challenging environment, our power businesses (Transcorp Power Limited & Transafam Power Limited) have sustained revenue growth increase by 32percent and 30percent respectively while our hospitality continues to outperform across all indices.

“We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders,” asserted Omogiafo.