Quick Summary: Transcorp Plc reported a remarkable N136.6 billion pre-tax profit for 2024, marking a 132.41% increase from the previous year. Revenue soared by 107.07% to N407.9 billion, driven primarily by the power sector. The company proposed a total dividend of N1.00 per share for the financial year. Strong asset growth and strategic cost management contributed to the impressive financial performance.
Transcorp Reports N136.6 Billion Pre-Tax Profit as Revenue Soars
Impressive Financial Growth in 2024 Transnational Corporation Plc (Transcorp) has released its financial results for the year ending December 31, 2024, reporting a remarkable pre-tax profit of N136.6 billion. This represents a significant 132.41% increase from the N58.8 billion recorded in the previous year, driven by a substantial surge in revenue.
Revenue Growth and Key Contributions The group’s total revenue soared to N407.9 billion, marking a 107.07% increase from N196.9 billion in 2023. The ‘power’ segment played a dominant role, contributing 82.8% of total revenue. However, revenue for the company declined by 10.08%, dropping from N16 billion to N14.4 billion in 2024.
Pre-tax profit for the company itself saw a notable increase, rising by 90.74% to N18.4 billion. Profit from core operations also experienced significant growth, reaching N25.1 billion, a 64.52% jump from N15.2 billion.
Strong Asset Growth and Retained Earnings Total assets for the group surged to N751.5 billion, reflecting a 41.82% increase from N529.9 billion in 2023. Retained earnings also saw a substantial rise of 62.96%, climbing from N68.9 billion to N112.3 billion.
Total comprehensive income attributable to shareholders stood at N55.4 billion, while non-controlling interests accounted for N42.5 billion, bringing the total to N97.9 billion. In the previous year, these figures were N25 billion and N16 billion, respectively, totaling N41.1 billion.
Dividend Payout to Shareholders Transcorp has proposed a final dividend of 60 kobo per ordinary share, subject to shareholder approval and applicable withholding tax. The dividend will be paid to shareholders registered by March 27, 2025.
With the interim dividend of 40 kobo already paid on August 7, 2024, the total dividend for the 2024 financial year amounts to N1.00 per ordinary share.
CEO’s Statement on Financial Performance Commenting on the results, Transcorp’s President and Group Chief Executive Officer, Mrs. Owen D. Omogiafo, stated:
“Our 2024 financial performance reflects the sustainable value creation strategy of Transcorp Group. We have consistently recorded impressive growth across all indices year on year, despite the challenging macroeconomic environment.”
Financial Highlights (2024 vs. 2023)
- Revenue: N407.9 billion (+107.07%)
- Cost of Sales: N212.2 billion (+141.62%)
- Gross Profit: N195.6 billion (+79.27%)
- Other Gains: N5.3 billion (+84.21%)
- Administrative Expenses: N53.9 billion (+100.15%)
- Operating Profit: N149 billion (+83.00%)
- Finance Income: N1.8 billion (+27.38%)
- Finance Cost: N18.5 billion (-25.88%)
- Pre-Tax Profit: N136.6 billion (+132.41%)
- Post-Tax Profit: N94 billion (+188.30%)
- Total Assets: N751.5 billion (+41.82%)
- Retained Earnings: N112.3 billion (+62.96%)
Revenue Breakdown and Cost Analysis The power sector remained the major revenue driver, contributing N337.7 billion (82.8%), while the hospitality segment generated N70.1 billion (17.2%).
Despite impressive revenue growth, the cost of sales also rose sharply by 141.62% to N212.2 billion from N87.8 billion. Natural gas and fuel costs accounted for 80.1% of total expenses, reaching N170 billion.
Gross profit increased to N195.6 billion, up 79.27% from N109.1 billion in the previous year. The company also reported N5.3 billion in other gains, an 84.21% rise, driven by changes in the fair value of investment properties and dividend income from equity securities.
Rising Operating and Administrative Costs Administrative expenses doubled, increasing by 100.15% to N53.9 billion, compared to N26.9 billion in the prior year. This increase was primarily due to higher employee costs, management fees, license renewals, office expenses, and energy costs.
However, operating profit remained strong, rising by 83% to N149 billion from N81.4 billion in 2023.
Finance Performance and Debt Reduction Finance income increased by 27.38% to N1.8 billion, mainly from interest on loans, which contributed 98.7% of total finance income. Meanwhile, the company reduced finance costs by 25.88%, bringing it down from N25 billion in 2023 to N18.5 billion in 2024.
Asset Growth and Financial Strength Total assets for the company climbed by 41.82% to N751.5 billion, compared to N529.9 billion in the previous year. Non-current assets grew to N406.1 billion, with property, plant, and equipment making up N310.4 billion of that figure.
Current assets also increased significantly, reaching N345.4 billion from N171.3 billion. Trade and other receivables accounted for the largest portion of current assets, totaling N320.6 billion.
Conclusion Transcorp’s 2024 financial performance underscores its resilience and strategic focus on value creation. With impressive revenue and profit growth, coupled with prudent financial management, the company remains well-positioned for sustained success in the coming years.
