The board of Transnational Corporation of Nigeria Plc, last week reported that net profit growth significantly outpaced revenue for the first quarter ended March 31, 2022, according to figures submitted to the Nigerian Exchange Limited.
According to the score-card, revenue grew during the period by N6.954bn, or 28.45% from N24.435bn to N31.389bn; while cost of sales increased to N14.01bn from N14.01bn; leaving gross profit of N15.225bn, compared to the previous N10.424bn
The biggest contribution to cost of sales was the N12.114bn, up from N11.461bn of natural gas and fuel costs; followed from afar by N1.228bn on food and beverage, compared to N697.053m in the prior first quarter.
Administrative expenses jumped to N5.215bn from N3.659bn; while impairment loss on financial assets soared from N90m to N135m; other income, being the other income dropped from N244.679m to N170.139m; just as other net losses stood at N27.791m from N3.423m; resulting in operating profit of N10.017bn, compared to N6.916bn.
Finance costs (interest expense on loans) dropped to N3.544bn from N3.832bn; while interest on loans rose to N242.907m from N140.546m; resulting in a net finance cost of N3.787bn, from N3.691bn. Foreign exchange loss on financing activities dropped from N727.547m to N503.589m.
Profit before tax climbed from N2.497bn to N5.725bn; while tax expenses rose to N690.436m from N456.354m; following which profit after tax rose by N2.99bn or 146.68% from N2.041bn to N5.035bn, translating to Earnings Per Share of 5.17 kobo, compared to 1.79 kobo in the preceding Q1.
A breakdown of the revenue and PBT by operating segments showed that the power business raked in N24.348bn and N6.091bn respectively; compared to previous first quarter’s N20.465bn and N3.917bn; while hospitality added N7.04bn and N1.106bn; up from N3.696bn and N201.978m loss respectively.
By major products and services, ancillary services contributed N15.302bn to total revenue, from N13.532bn; followed by the N9.046bn from energy sent out, compared to N6.928bn; while rooms contributed N4.509bn from N2.554bn; food and beverage grew from 1.024bn to N2.175bn.