Transcorp Net Profit Up N15.96bn 9-Month Profit

The board of Transnational Corporation of Nigeria Plc (Transcorp), on Tuesday submitted its unaudited nine months’ result indicating a faster percent growth in profit in the period under review than the corresponding period of 2017, which means that shareholders are in for a juicier deal, should the growth pattern be sustained in the final quarter leading to year-end.
Turnover of the conglomerate operating in the hospitality, agro-allied, power as well as oil and gas, for the period rose by N23.11bn or 40.72% from N56.756bn in the previous nine-month, to N79.86bn. Cost of sales rose at a slower N11.766bn, or 37.8% from N31.134bn to N42.9bn; resulting in gross profit of N36.96bn, an improvement of N11.34bn or 44.25% over the previous N25.622bn.
Administrative expenses for the period rose N2.161bn or 23.01% from N9.395bn in 2017, to N11.557bn; other income fell marginally to N542.051m from N582.737m; while other loss- net stood at N15.512m, as against the prior N0.505m; leaving operating profit at N25.929bn, a growth of N9.119bn or 54.25% from the preceding third quarter’s N16.81bn.
Finance income increased from N577.692m to N901.057m; just as finance cost climbed slightly higher at N7.492bn from N7.196bn; foreign exchange loss on financing activities increased marginally to N1.621bn from N1.149bn. Net finance cost therefore rose to N8.212bn from N7.767bn.
Profit before tax stood at N17.717bn, up from N9.042bn; while profit after tax got 95.05% or N7.78bn better at N15.962bn from N8.185bn; despite the N897.278bn, or 104.699% rise in income tax expenses for the period. Earnings Per Share rose to 5.77 kobo, up from 4.15 kobo.
A breakdown of the score-card showed that the power sector remains the honey-pot, contributing N67.19bn and N17.022bn to sales revenue and PBT for the period; followed by the hospitality segment, which added N12.67bn and N3.451bn respectively. In the corresponding period of 2017, the power segment pooled N46.968bn and N9.436bn; just as hospitality segment contributed N9.787bn and N1.673bn respectively.