Transcorp Plc 2021 Net Profit Soars 528% To N23.831bn, Directors Offer N0.02 Dividend

The board of the Transnational Corporation of Nigeria (Transcorp), on Friday, presented its audited financials for the year ended December 31, 2021, to the Nigerian Exchange Limited, wherein it reported a robust 47.76% growth in revenue and even more significant 528.45% improvement in net profit. Consequently, the directors will recommend a dividend per share of two kobo for approval of shareholders at the next annual general meeting. The payout, which though representing a 100% increase over the previous year’s payment, is a far cry considering the earnings per share of 34 kobo, from a loss of two kobo in the corresponding period of 2020.

Revenue for the period soared by N35.948bn from N75.27bn in the prior full-year to N111.219bn; mainly being the N89.477bn earned from the group’s power business, up from N65.118bn in the preceding year; followed from afar by the N21.742bn from its hospitality segment, from N10.152bn.

A further breakdown of the revenue showed that energy sent out yielded the most revenue of N57.031bn, from N40.509bn; followed by the N32.418bn in capacity charge; and N14.085bn earned from rooms, up from N6.502bn; and food and beverages that grossed N6.47bn from N2.593bn. Cost of sales increased N14.138bn representing a slower 33.42% to N56.439bn, up from N42.301bn; resulting in a gross profit of N54.779bn, a 66.15% increase.

Other gains rose marginally from N2.594bn to N2.644bn; impairment loss on financial assets dropped significantly from N3.956bn to N182.795m; administrative expenses jump higher to N18.704bn from N11.383bn, the hospitality accounting for N11.428bn, followed by N.293bn from power; while the nil termination/retirement benefits for the period as against N2.238bn; resulted in an operating profit of N38.535bn, compared to prior year’s N17.986bn.

Finance income fell to N283.926m from N415.418m, and finance cost from N16.793bn to N15.327bn, of which N4.072bn and N7.293bn were incurred by the hospitality and power arms, compared to N5.306bn and N8.495bn respectively; bargain purchase on consolidation of Afam Power Limited amounted to a positive N4.506bn. These left profit before tax at N27.998bn, the lion’s share of which was, once again, from the power business; compared to N1.608bn in 2020. A 100% increase in income tax left it at N4.167bn from N2.183bn; while profit after tax came to N23.831bn from N3.792bn, from the directors will offer a total of N812.959m for payout as total dividend, up from N406.479m paid on the outstanding ordinary shares of 40,647,990,293 shares of 50 kobo each.

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