Transcorp Plc records strong performance with 21% growth in 2022

By Onome Amuge

Transnational Corporation Plc delivered a strong financial performance   for the full year ended December 31, 2022 as total revenue rose to N134.7 billion from N111.2 billion posted in December 2021, representing a 21 per cent total revenue increase.

The conglomerate with considerable investments in the hospitality, power, and oil & gas sectors, also announced an advancement in its operating profit which jumped from N38.5 billion in December 2021 to N46.7 billion in December 2022.

Similarly, profit before tax rose eight per cent to N30.3 billion, compared to N27.9 billion in December 2021, reflecting significant improvements in its major income lines.

Transcorp, in its financial statement for the full year, said it  recorded a seven per cent increase in its power investments, despite the challenges faced in the year from the issues with gas supply, off the diminished oil & gas production in the country during the year under review. The hospitality sector showed a very strong performance, achieving a record revenue of 31.4 billion and profit before tax of N4.5billion.

The financial results for the year ended December 2022, showed that total assets increased by six per cent from N416 billion in December 2021 to N442.7 billion in December 2022, primarily due to additional investment in the recovery of the power plants and investment in financial assets. In addition, shareholders’ funds rose to N154.8 billion, representing a six per cent year-on-year increase from N146.3 billion recorded in the same period of 2021.

Interestingly, the publicly quoted Conglomerate, with a shareholder base of approximately 300,000, noted that the impressive achievements were made within a challenging operating environment characterised by foreign exchange volatility, high cost of production and rising inflation. This is as operating expenses for the year under review stood at N23.4 billion, representing an increase of 24 per cent compared to N18.8 billion recorded in the same period of 2021.

Speaking on the company’s positive financial performance,Owen Omogiafo,the president/group chief executive officer, attributed the success of the results to the robustness of the company’s business model, which remains prudent and nimble across its operations.

She said,“As we reflect on our achievements, we take pride in the improved performance of our Group. Looking to the future, we will continue to focus on efficiency and cost optimisation, ensuring that we remain agile and responsive to the market while delivering value to our stakeholders.”