For the first time in their history, companies in the Transnational Corporation Plc group, along with its listed subsidiaries (Transcorp Plc, Transcorp Hotels Plc and Transcorp Power Plc), paid a total N16,339,051,870.40 as interim dividends for the half-year ended June 2024.
While Transcorp Plc shareholders received a total N4,046,799,029.30, representing a dividend of 10 kobo per 50 kobo ordinary share; Transcorp Power directors paid out N11.25bn; Transcorp Hotels distributed N1,024,252,841.10, milestones reflecting what the group said in a statement, said is a commitment to delivering sustainable value to its shareholders.
The payout, it said, demonstrates the strength and resilience of the group’s diversified portfolio.
Transcorp Plc reported a significant 114% growth in total revenue to N175.426bn, compared to N82.123bn in the corresponding period of 2023, with cost of sales umping to N89.948bn from N38.884bn; resulting in N85.478bn in gross profit from N43.239bn.
Other income grew from N1.963bn to N12.585bn; other gains amounted to N3.8bn from N658.051m; while impairment loss on financial assets increased from N1.779bn to N3.8bn; just as administrative expenses jumped to N21.153bn from N14.135bn, reflecting what the company said was the impact of inflation and cost of operations.
Finance cost (net) stood at N7.124bn from N6.595bn; foreign exchange gain on financing activities improved to N1.074bn, compared to the previous N4.828bn loss.
Profit Before Tax soared by 283% growth to N70.9bn, up from N18.5bn in the same period last year, while tax expense for the period rose significantly from N2.417bn to N18.131bn; following which profit after tax grew by N36.683bn or 227.79% from N16.103bn, which translated into Earnings Per Share of 81.09 kobo, up from 27.20 kobo.
Transcorp Hotels grew its half-year revenue by 61% from N18.5bn to N29.7bn, with cost of sales rising by almost 100% from N4.986bn to N8.53bn, resulting in gross profit of N21.188bn, up from N13.478bn.
Other operating income rose significantly from N964.754m to N4.232bn; while operating expenses increased to N13.282bn from N8.819bn; while operating profit rose to N12.129bn from N5.619bn. Finance cost was flat, dropping marginally to N1.863bn from N1.987bn; while finance income increased to N208.009m from N8.305m. Profit before tax, therefore improved from N3.639bn, to N10.474bn representing an increase of 192%. Tax expense increased from N1.063bn to N3.858bn, with profit after tax at N6.615bn, from N2.657bn, a 157% jump, translating to EPS of 65 kobo, compared to the previous 24 kobo, from which the directors paid 10 kobo interim dividend per share on August 15, 2024.
During the period, Transcorp Power, total revenue rose to an impressive N135.4bn, growing by 142% from N55.9bn in the same period of 2023, of which cost of sales ballooned to N72.466bn from N29.225bn, leaving gross profit at N62.976bn from N26.708bn. Other operating income fell to N21.156m from N312.409m. Impairment loss on financial assets increased to N2.994bn from N1.304bn; administrative expenses equally soared to N8.807bn from N2.647bn.
Finance income increased to N2.655bn from N1.107bn; while finance cost amounted to N3.983bn from N3.207bn, leaving net finance cost fell by 37% to N1.3bn, a reduction from N2.1bn in the first half of 2023.
PBT recorded a growth of 214% to N50.9bn, compared to N16.2bn in the previous year, income tax expense jumped to N14.194bn from N5.196bn; resulting in net profit of N36.777bn from N11.043bn, representing EPS of N4.90, down from N139.52 each.
Attributing the result, to the company’s strategic vision and relentless pursuit of excellence, Peter Ikenga, Managing Director/Chief Executive, the “positive performance across key indicators emphasizes our agility and ability to navigate complex market dynamics effectively. We recognize the criticality of power to unlocking the value in our dear country, Nigeria and we remain committed towards our goal of bridging the energy gap in our country. We will continue to execute our maintenance programme and make the necessary investments to increase our power generating capabilities.”
Emmanuel Nnorom, the chairman, said the impressive result underscores the company’s resilience and operational excellence while navigating the complex power landscape, adding that “the interim dividend of N1.50 is a testament to our commitment to create value and spread wealth to all our shareholders. The half year performance also further reinforces our consistent upward growth trajectory year on year and confidence that Transcorp Power will continue to deliver exceptional performance in the future. Our shareholders are assured of sustained high level of performance and superior returns for their investment in Transcorp Power.
Commenting on the overall performance, Tony Elumelu, Chairman, Transcorp Group, in a statement following the release of the H1 2024 results said “Transcorp exemplifies delivering a vision, executing through operational excellence and consistently creating the transformative impact that we are renowned for. We are building to last, across key sectors in Nigeria.
Also commenting, Owen Omogiafo, President/Group Chief Executive Officer of Transcorp Group, attributed the remarkable growth to the group’s commitment to operational excellence, strategic management of its portfolio, and innovation. “Transcorp Group and its subsidiaries remain firmly committed to delivering exceptional and long-term value to our stakeholders.”
