Transnational Corporation Plc (Transcorp) has announced a stellar financial performance for the fiscal year ending December 31, 2024, showcasing a robust surge in profitability and revenue. Profit after tax soared to N94.08bn, representing a remarkable 189% increase compared to N32.48bn recorded in 2023. This impressive growth was underpinned by a more than doubled revenue figure of N407.91bn, a 107% increase from N196.99bn in the previous year. This exceptional performance underscores the effectiveness of Transcorp’s strategic investments and operational efficiencies across its diverse business segments. Despite increased operational expenses, the company successfully navigated a challenging macroeconomic environment to deliver substantial value to its shareholders. The earnings per share for 2024 reached 145 kobo, a significant jump from 40 kobo in 2023, further reinforcing the company’s commitment to shareholder value creation.
This significant revenue growth, combined with effective cost management strategies, contributed to a 79% increase in gross profit to N195.67bn, despite a rise in the cost of sales. Transcorp’s diversified income streams further bolstered its profitability. The company realized a substantial gain of N10.91bn from the disposal of shares, which significantly contributed to the overall profit. Additionally, other gains saw an 84% increase, reaching N5.32bn, compared to N2.89bn in the preceding year. While administrative expenses increased, reflecting the company’s expansion and operational activities, finance costs decreased, indicating effective management of borrowing costs. This holistic approach to financial management, marked by both revenue growth and cost optimization, has positioned Transcorp for continued success.
Transcorp’s balance sheet reflects its robust financial health and growth trajectory. Total assets grew by 42% to N751.56bn in 2024, up from N529.92bn in 2023, indicating substantial investments and expansion. Similarly, total equity expanded to N271.69bn from N187.30bn, bolstering the company’s financial strength and stability. This strong balance sheet position provides Transcorp with the financial flexibility to pursue further growth opportunities, particularly in the power and energy sectors, as articulated by the company’s leadership. The substantial increase in both assets and equity indicates a healthy financial position, which provides a solid foundation for future investments and strategic initiatives.
Transcorp Hotels Plc, a subsidiary of Transcorp, has strategically invested in upgrading its facilities and infrastructure, securing loans totaling N22.75bn from the Bank of Industry. These loans, obtained at a favorable interest rate of 10%, were instrumental in financing the renovation of hotel rooms, kitchen areas, public spaces, and the development of a new multi-purpose banqueting and conference centre. The company adheres to transparent accounting practices, recognizing the fair value and deferred income on these loans upon drawdown and amortizing the deferred income on a straight-line basis over the loan tenor. This strategic investment demonstrates Transcorp Hotels’ commitment to enhancing its offerings and providing a superior guest experience. The favorable loan terms contribute to the company’s financial stability and allow for continued investment in its properties.
The financial statements of Transcorp Hotels Plc provide further details regarding the accounting treatment of the loans obtained from the Bank of Industry. The opening deferred income on the loans stood at N1.56bn, with N487.8m credited to other operating income for the year 2024. This accounting treatment adheres to established accounting principles and provides transparency regarding the financial impact of the loans. The investment in upgraded facilities is expected to contribute to enhanced revenue generation and long-term value creation for Transcorp Hotels Plc. The strategic utilization of these loans aligns with the company’s focus on delivering exceptional hospitality experiences and strengthening its market position.
Owen Omogiafo, the President/Group Chief Executive Officer of Transcorp, has emphasized the company’s commitment to sustainable value creation. Reflecting on the impressive 2024 financial performance, Omogiafo attributed the success to operational efficiency, strategic investments, and a steadfast focus on shareholder value. She highlighted the company’s ability to consistently achieve impressive growth across all performance indicators, despite the prevailing macroeconomic challenges. Looking ahead, Omogiafo reiterated Transcorp’s commitment to further expansion, particularly in the power and energy sectors, aligning with the company’s strategic vision for long-term growth and value creation. The successful completion of the share capital reconstruction, reducing the total issued shares by 75%, further streamlines the company’s structure and enhances shareholder value. These strategic initiatives, coupled with the company’s strong financial performance, position Transcorp for continued success in the future.
