Transnational Corporation Plc (Transcorp) has released its financial results for the year ending December 31, 2024, reporting a pre-tax profit of N136.6 billion, marking a 132.41% increase from the N58.8 billion recorded in the previous year. This remarkable growth was driven by a substantial rise in revenue.
The group’s total revenue surged by 107.07%, reaching N407.9 billion, compared to N196.9 billion in 2023. Notably, the power sector accounted for 82.8% of the total revenue.
However, the company’s standalone revenue declined by 10.08%, falling from N16 billion in 2023 to N14.4 billion in 2024. Despite this, the company recorded a 90.74% increase in pre-tax profit, reaching N18.4 billion, while profit from core operations grew by 64.52% to N25.1 billion.
Total assets for the group expanded significantly, rising 41.82% to N751.5 billion, compared to N529.9 billion in the prior year. Additionally, retained earnings increased by 62.96%, reaching N112.3 billion, up from N68.9 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. This reflects a significant increase from the previous year’s figures of N41.1 billion, comprising N25 billion for shareholders and N16 billion for non-controlling interests.
Dividend Declaration
Transcorp has proposed a Final Dividend of 60 kobo per ordinary share, subject to shareholder approval and applicable withholding tax. Shareholders registered by March 27, 2025, will be eligible for this payout.
Combined with the Interim Dividend of 40 kobo paid on August 7, 2024, the total dividend for the 2024 financial year amounts to N1.00 per ordinary share.
Leadership Commentary
Commenting on the financial performance, Mrs. Owen D. Omogiafo, President and Group Chief Executive Officer of Transcorp, 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% YoY)
- Cost of Sales: N212.2 billion (+141.62% YoY)
- Gross Profit: N195.6 billion (+79.27% YoY)
- Other Gains: N5.3 billion (+84.21% YoY)
- Administrative Expenses: N53.9 billion (+100.15% YoY)
- Operating Profit: N149 billion (+83.00% YoY)
- Finance Income: N1.8 billion (+27.38% YoY)
- Finance Cost: N18.5 billion (-25.88% YoY)
- Pre-Tax Profit: N136.6 billion (+132.41% YoY)
- Post-Tax Profit: N94 billion (+188.30% YoY)
- Total Assets: N751.5 billion (+41.82% YoY)
- Retained Earnings: N112.3 billion (+62.96% YoY)
Revenue Breakdown & Cost Analysis
Revenue from power operations contributed N337.7 billion (82.8%), while the hospitality segment accounted for N70.1 billion (17.2%).
However, cost of sales surged by 141.62%, reaching N212.2 billion, compared to N87.8 billion in the previous year. Natural gas and fuel costs made up 80.1% of this figure, totaling N170 billion.
Despite these rising costs, gross profit climbed 79.27% to N195.6 billion, up from N109.1 billion in 2023.
Other Financial Insights
Transcorp recorded N5.3 billion in other gains, an 84.21% increase from the prior year. This was primarily driven by changes in the fair value of investment properties (N2.3 billion) and dividend income from equity securities (N2 billion).
On the expense side, administrative costs doubled, rising 100.15% to N53.9 billion, fueled by higher employee costs, management fees, license renewals, office expenses, and energy costs.
Despite increased expenditures, operating profit rose by 83%, reaching N149 billion, compared to N81.4 billion in the prior year.
Finance Performance & Debt Management
Finance income increased by 27.38%, reaching N1.8 billion, with interest on loans accounting for 98.7% of the total. Meanwhile, finance costs declined by 25.88%, dropping from N25 billion in 2023 to N18.5 billion in 2024.
Asset Growth & Liquidity Position
The company’s total assets surged 41.82%, reaching N751.5 billion, compared to N529.9 billion in the prior year.
- Non-current assets rose to N406.1 billion, up from N355.6 billion, with property, plant, and equipment contributing N310.4 billion.
- Current assets grew significantly, reaching N345.4 billion, up from N171.3 billion in 2023. Trade and other receivables represented the largest component, amounting to N320.6 billion.
Conclusion
Transcorp’s 2024 financial performance highlights strong revenue growth, cost efficiency, and improved profitability, reinforcing its position as a leading player in the Nigerian business landscape. With N1.00 per share in total dividends, shareholders stand to benefit from the company’s robust earnings growth and strategic value creation initiatives.
