In a major financial boost, Transnational Corporation (Transcorp) Plc has reported an impressive 234% increase in profit for the first nine months of the 2024 financial year, reaching N75.9 billion, a substantial rise from N22.76 billion in the corresponding period of 2023.
This remarkable financial growth highlights Transcorp’s resilience and strategic expansion amid challenging economic conditions.
According to the company’s unaudited financial statement for Q3 FY2024, Transcorp’s revenue surged by 132.5% year on year to N297.7 billion, compared to N128.072 billion in the previous period. The significant rise in revenue reflects heightened business activity and increased pricing, positioning Transcorp as a key player in the Nigerian corporate landscape.
Cost of sales rose by 158.5% year on year to N164.8 billion due to higher natural gas and fuel costs, affecting production expenses. The company’s operating expenses also saw a rise, increasing by 56.8% to N37.268 billion, driven by management fees, advertising, and increased employee costs.
Despite rising costs, Transcorp reported an impressive N18.2 billion in additional income, primarily from gains on investment sales and dividend income, which offset some of the financial pressures. A favorable net finance cost, reduced by 50.2% to N8.3 billion due to foreign exchange gains on borrowings, added further to the company’s strong quarterly performance.
The company’s pretax profit skyrocketed by 303%, reaching N105.485 billion, compared to N26.183 billion in the same period last year, showcasing Transcorp’s effective financial management strategies. Additionally, Transcorp recently completed a share reconstruction, delisting 40.6 billion shares and re-listing 10.1 billion shares at N44.20 each. This restructuring contributed to a 9.95% surge in its share price on the Nigerian Exchange, closing at N48.60 due to heightened buying interest.
As Transcorp strengthens its market presence and maintains its financial momentum, the company sets a high benchmark in the Nigerian corporate sector, reinforcing its role as a formidable player in the national economy.
