Transnational Corporation Plc (Transcorp) has reported impressive financial results for the full year ended December 31, 2022, despite the challenging business environment in Nigeria.
The conglomerate, which has investments in the Hospitality, Power, and Oil & Gas sectors, recorded growth in its major income lines, including a profit before tax of N30.3 billion, representing an 8% increase compared to the previous year.
According to the financial statements released by Transcorp, the Power sector saw a 7% increase, despite the challenges faced due to gas supply issues and decreased Oil & Gas production in the country.
The Hospitality sector showed a very strong performance, achieving a record revenue of N31.4 billion and profit before tax of N4.5 billion.
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Transcorp’s total revenue and operating profit also experienced significant growth, rising by 21% from N111.2 billion in December 2021 to N134.7 billion in the period under review, and from N38.5 billion in December 2021 to N46.7 billion in December 2022, respectively.
However, operating expenses for the year ended December 2022 stood at N23.4 billion, representing an increase of 24% compared to N18.8 billion recorded in the same period of 2021.
Despite the challenging operating environment characterized by foreign exchange volatility, high cost of production and rising inflation, Transcorp’s total assets increased by 6% from N416 billion in December 2021 to N442.7 billion in December 2022, primarily due to additional investment in the recovery of the power plants and investment in financial assets.
Shareholders’ Funds rose to N154.8 billion, representing a 6% year-on-year increase from N146.3 billion recorded in the same period of 2021.
Speaking on the results, the President/Group Chief Executive Officer, Dr. (Mrs.) Owen Omogiafo attributed the success of the results to the robustness of the company’s business model, which remains prudent and nimble across its operations.
“As we reflect on our achievements, we take pride in the improved performance of our Group. Looking to the future, we will continue to focus on efficiency and cost optimization, ensuring that we remain agile and responsive to the market while delivering value to our stakeholders,” she said.
The company said it remains committed to its transformation agenda whilst sustaining growth and a continuous drive to deliver long-term value to its shareholders.