Transnational Corporation Plc (TRANSCORP) Reports 102% Growth in Net Income for 2023

Arewacoolmusic January 31, 2024

Transnational Corporation Plc (TRANSCORP) has released its unaudited financial statements for 2023, revealing a net income of N34.09 billion. This marks a substantial growth of 102% from the N16.84 billion net income recorded in 2022. The conglomerate, operating in the energy, real estate, and agricultural sectors and serving as the parent entity of Transcorp Hotels Plc, reported a revenue of N193.98 billion for the fiscal year 2023, signifying a 44% increase compared to the N134.72 billion recorded in 2022.

Key Financial Highlights for FY 2023 (with percentage change from FY 2022):

Revenue: N193.98 billion (44% increase)
Cost of sales: N87.99 billion (29% increase)
Gross profit: N105.98 billion (60% increase)
Operating profit: N80.15 billion (72% increase)
Profit before tax: N55.87 billion (85% increase)
Income tax: N21.79 billion (62% increase)
Profit for the year: N34.09 billion (102% increase)
Total comprehensive income for the year: N42.80 billion (157% increase)
Basic earnings per share: N0.56 (195% increase)
Total assets: N523.22 billion (18% increase)
Cash and cash equivalent at end of the year: N12.54 billion (129% increase)

Segment Analysis:

Power Sector: The power sector, the primary revenue driver, generated approximately N151.27 billion, constituting around 78% of the group's overall revenue. The segment's turnover showed a significant 46% increase compared to 2022.
Transcorp Hotels: Contributed revenue of N42.7 billion, representing a 22% contribution to the group's total revenue.

Foreign Exchange Losses: The group reported net foreign exchange losses on foreign currency borrowings in 2023 amounting to N9.92 billion, marking a 140% increase from the N4.12 billion reported in 2022.

TRANSCORP is currently involved in the construction of Transcorp Hotels Ikoyi, a 5-star 300-room hotel situated in Ikoyi, Lagos.

The financial results reflect the conglomerate's robust performance, particularly in the power sector, and its strategic positioning for growth in diverse sectors.