Nume Ekegh
Transnational Corporation Plc (Transcorp Group), has announced robust financial results for the third quarter of 2024, marking a year-on-year performance leap driven by a strong focus on key growth sectors.
Also, the firm in a statement announced the successful completion of its share reconstruction, a strategic action aimed at maximising long-term shareholders’ value.
The share reconstruction involved a consolidation of the total number of issued shares at a ratio of 1 to 4, reducing the total issued and fully paid shares of Transcorp Group 40.6 billion shares to 10.2 billion shares. Whilst the number of shares reduced pro rata, the total value of shareholders’ investments remains unchanged with no dilutive impact to shareholders.
For the period ending September 30, 2024, Transcorp recorded revenue of N298 billion, a remarkable 133 per cent increase from the N128 billion reported in the same period of 2023. Profit before tax (PBT) surged by 303 per cent, reaching N105.5 billion compared to N26.2 billion in Q3 of the previous year, further consolidating the Group's standing in Nigeria’s competitive business environment.
Its total assets increased by 29 per cent, climbing from N530 billion in December 2023 to N684 billion by the third quarter of 2024. The asset growth was paralleled by a 34 per cent increase in shareholders’ funds, which rose from N187 billion in December 2023 to N251 billion by Q3 2024.
The growth was largely attributed to retained earnings, showcasing the Group’s commitment to creating shareholder value. Operating expenses saw a 38 per cent rise to N32 billion in Q3 2024, reflecting the impact of inflation on operating costs, while net finance costs rose by 12 per cent to N12 billion, attributed to higher interest rates.
President/Group Chief Executive Officer, Transcorp Group, Owen Omogiafo, attributed the Group’s exceptional performance to its focus on innovation, operational excellence, and ability to navigate a complex market environment.
She said: “We are proud of our consistent year-on-year growth. This remarkable financial performance is a reflection, once again, of our vision and spirit of execution. As we approach year end, we will focus on enhancing operational efficiency, investing in high-growth sectors, and delivering long-term value to our shareholders. We are investing for the future, particularly in the energy and hospitality sectors, delivering for our shareholders and our nation.”
Commenting on the share reconstruction, Omogiafo said: “This share reconstruction is in line with the company’s corporate strategy and growth plan and is aimed at maximising shareholder value. The reconstruction will bring the company’s capital structure to a manageable position.”
She reiterated that Transcorp would remain committed to driving growth and creating value for its shareholders through strategic actions that align with its business objectives.
