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Transnational Corporation of Nigeria (Transcorp), the largest conglomerate in Africa’s most populous nation, doubles profit in 2023, joining other bellwether firms in fattening their bottom lines.
Of course, the company’s diverse investment in power, hospitality, and energy sectors has reported remarkable results, demonstrating resilience and agility in the final quarter of 2023, amidst the prevailing economic headwinds, which includes a severe foreign scarcity, depreciation of the Naira, rising inflation, and gas shortages.
The Company maintained controlling interests in Trans Afam Power Limited, Transcorp Hotels Plc, Transcorp Hotels Calabar Limited, Transcorp Energy Limited, Aura by Transcorp Hotels, Transcorp Power Limited, Transcorp Properties Limited, Transcorp OPL 281 Limited, Transcorp Hotels Ikoyi Limited, Transcorp Hotels Port Harcourt Limited and Teragro Commodities Limited.
For the year ended December 2023, the company’s profit after tax (PAT) surged by 102.35 percent to N34.08 billion from N16.83 billion as at December 2022.
Investors will be watching a record profit margin that will most likely drive another rally in stock. The firm was the best performer on the NGXASI index in 2023, and it has not disappointed this year as it has a year-to-date (YTD) of 49.50 percent.
Net profit margin increased to 17.56 percent in the period under review from 12.49 percent the previous year.
The conglomerate is making money from its core operations as operating profit spiked by 71.60 percent to N80.14 billion in December 2023 from N46.70 billion the previous year.
Operating profit margin rose to 41.31 percent in December 34.66 percent in December 2023 from 34.66 percent the previous year.
The company’s power subsidiary or segment that makes up 77.98 percent of Group’s sales generated revenue of N151.25 billion, which is 46.48 percent higher than 2022’s N103.27 billion.
The power subsidiaries of Transcorp that include Transcorp Power Limited (TPL) and Transafam Power are well positioned to exploit available opportunities for growth.
Specifically, TPL holds a significant position as one of Nigeria’s foremost electricity generation companies, and it proudly possesses ownership of the esteemed Ughelli Power Plant.
The Group has been investing in the power sector for 10 years, with its first investment in the Ughelli Power Plant through TPL.
Drilling down the numbers shows the hospitality generated N42.70 billion in revenue, which is 35.81 percent higher than 2022’s N31.44 billion.
The hospitality business is made up of its direct subsidiary Transcorp Hotels Plc. (THP) and indirect subsidiaries, Transcorp Hotels Calabar Limited (THC), Transcorp Hotels Ikoyi Limited, Transcorp Hotels Port Harcourt Limited and Aura by Transcorp Hotels.T
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