Transcorp Plc grows revenue 31% to N82.1bn in H1 2023

By Onome Amuge.

Transnational Corporation Plc posted a strong financial performance across all its major indices in the first half of the year ended June 30, 2023, as total  revenue hit  N82.1 billion in H1 2023, compared to N62.9 billion in H1 2022, marking a substantial 31 per cent growth year-on-year.

The conglomerate with considerable investments in the hospitality, power, and oil & gas sectors, also announced an advancement in its operating income which grew by 46 per cent to close at N29.9 billion as of June 2023, compared to N20.5 billion in June 2022,  while operating expenses stood at N15.9 billion, an increase of 40 per cent compared to N11.3 billion of the corresponding previous year.

Transcorp, in its report filed with the Nigerian Exchange (NGX), reported a 39 per cent growth in profit before tax to N18.5 billion in H1 2023, from N13.4 billion in H1 2022, but interest cost declined by 9 per cent to N6.6 billion in June 2023 from N6.1 billion in the same period under review.

The company also maintained a strong balance sheet, with total Assets rising to N495.3 billion, representing a 12 per cent increase against the N442.7 billion recorded at the end of June 2022. This was attributed  to the  61 per cent increase in debt and equity securities and 40 per cent appreciation in trade and other receivables which cushioned the effect of the 68 per cent decline in inventories.

Transcorp also disclosed that its shareholders’ funds remained very strong at N176.3 billion up from N154.8 billion recorded in the same period in 2022, further reinforcing the company’s commitment to delivering long-term value to its shareholders.

Commenting on the result, Owen Omogiafo Transcorp’s president/group chief executive officer, remarked that the group continues to sustain growth and improvement, showing resilience despite a challenging operating environment, characterised by foreign exchange volatility, gas supply constraints, and rising inflation, amongst others.

Omogiafo noted that the first-half financial results affirm the company’s dedication to driving innovation and seizing opportunities for sustainable growth, positioning Transcorp as a trailblazer in the Nigerian business realm.

“In spite of the challenging environment, our power businesses (Transcorp Power Limited & Transafam Power Limited) have sustained revenue growth increase by 32 per cent and 30 per cent respectively, while our hospitality continues to outperform across all indices,” she said.

The Transcorp CEO further asserted that the  publicly quoted conglomerate with a shareholder base of approximately 300,000 shareholders remains focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all its shareholders.