Transnational Corporation Plc has reported a surge in profitability, posting a profit after tax of N94.08bn for the year ended December 31, 2024, marking a 189 per cent increase from N32.48bn recorded in 2023.
The conglomerate’s audited financial statements show that revenue more than doubled, rising by 107 per cent to N407.91bn in 2024 from N196.99bn in the previous year. The remarkable performance was driven by strong growth across its business segments.
Despite an increase in the cost of sales to N212.25bn from N87.85bn, the company’s gross profit rose by 79 per cent to N195.67bn from N109.14bn recorded in 2023.
Other income sources also contributed to the bottom line, with Transcorp reporting a gain of N10.91bn from the disposal of shares, alongside an 84 per cent rise in other gains to N5.32bn from N2.89bn.
However, finance costs dropped to N18.53bn from N25bn, reflecting a reduction in borrowing costs. Administrative expenses surged to N53.92bn from N26.94bn, highlighting increased operational spending.
The company’s total assets rose by 42 per cent to N751.56bn in 2024 from N529.92bn in 2023, while total equity expanded to N271.69bn from N187.30bn.
Earnings per share for the year stood at 145 kobo, a significant jump from 40 kobo in the previous year, reinforcing strong value creation for shareholders.
Transcorp Hotels Plc secured loans from the Bank of Industry amounting to N10bn in 2019 and N12.75bn in 2021 to finance the upgrade of its hotel facilities and infrastructure.
The loans were utilised to procure equipment for the renovation of hotel rooms, kitchen areas, and public spaces, and to equip a new multi-purpose banqueting and conference centre. The company disclosed that the loans were obtained at an interest rate of 10 per cent, which was below the prevailing market rate.
According to Transcorp Hotels, the fair value and deferred income on the loans were recognised on the loan drawdown date, with the deferred income subsequently amortised on a straight-line basis over the tenor of the loan. As of the reporting date, there were no unfulfilled conditions related to the facility.
Financial records show that the opening deferred income on the loans stood at N1.56bn, while N487.8m was credited to other operating income in the statement of profit or loss for the year ended December 31, 2024.
The President/Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, has reaffirmed the company’s commitment to sustainable value creation following its impressive financial performance in 2024.
Commenting on the results, Omogiafo stated, “Our 2024 financial performance reflects the sustainable value creation strategy of Transcorp Group. We have been able to consistently record impressive growth across all indices year on year, despite the challenging macroeconomic environment.”
She attributed the company’s growth to operational efficiency, strategic investments, and a firm focus on shareholder value.
Omogiafo further noted that Transcorp remains positioned for further expansion, particularly in the power and energy sectors, as it explores new opportunities to sustain its growth trajectory.
The PUNCH reported that Transnational Corporation Plc has announced the successful completion of its share capital reconstruction, reducing its total issued shares by 75 per cent from N40.6bn to N10.2bn.
