Nume Ekeghe

Transnational Corporation Plc (Transcorp) has delivered a highly improved financial performance for the year ended December 31,  2024, reinforcing its position as one of Nigeria’s most formidable conglomerates.  The company’s revenue surged 107 per cent to N408 billion,  from N197 billion in 2023, profit before tax (PBT) grew 132 per cent to N136.7 billion, up from N58.8 billion  the previous year while  profit after tax (PAT) climbed 188 per cent   to N94.1 billion as against N32.6 billion in 2023.
These numbers underscore Transcorp’s strategic agility and operational efficiency, allowing it to not only weather economic challenges but to thrive in an increasingly competitive landscape.
With an expanded asset base of N751.6 billion, up 42 per cent from 2023, and shareholders’ funds growing by 45 per cent to N271.7 billion, the company has strengthened its financial foundations for future expansion. The impressive earnings per share (EPS) growth from N0.40 in 2023 to 1.45 in 2024, coupled with a N10.1 billion dividend payout, signals strong value creation for investors.

Strong Financials Reflect Operational Excellence
Transcorp’s ability to more than double its revenue within a year highlights the effectiveness of its business model, expansion strategy, and disciplined cost management. Despite inflationary pressures, rising interest rates, and currency fluctuations, the company executed efficiently across its diverse business segments, demonstrating resilience and adaptability.
A deeper look into Transcorp’s financials reveals a well-calibrated strategy for sustainable growth. Operating income grew 83 per cent to N149 billion, reflecting robust revenue optimisation. Meanwhile, the company managed to cut its net finance cost by 45 per cent to N12.4 billion, thanks to the full repayment of foreign currency loans, reducing its exposure to exchange rate volatility. The reduction in gearing ratio from 32 per cent to 21 per cent is another testament to improved financial leverage and balance sheet optimisation, ensuring the company’s long-term financial health.
While operating expenses rose 105 per cent to N62.8 billion, this increase is largely attributable to strategic investments in operational capacity, infrastructure, and workforce expansion. Rather than eroding profitability, these investments have engendered sustained revenue growth and enhanced the company’s competitive position.

Power and Hospitality as Growth Drivers
Transcorp’s stellar financial results can be traced to its strategic investments across its core business sectors, power and hospitality, each of which contributed to the company’s remarkable growth trajectory.’
Transcorp Power Plc FY reported a 115 per cent increase in revenue, rising from N142.1 billion in 2023 to N305.9 billion in 2024. The company also recorded a 165 per cent surge in PAT to N80 billion, up from N30.2 billion in the previous year, underscoring its strong operational leadership and strategic execution. Gross profit saw an 89 per cent increase to N142.2 billion, reflecting enhanced efficiency and revenue growth.
Transcorp Power’s gearing ratio improved significantly from 64.48 per cent  in  2023 to 29.70 per cent in 2024, reinforcing its financial stability. Demonstrating its commitment to shareholder value, the board has proposed a final dividend of N3.50 per share, bringing the total dividend for the year to N5.00 per share, including the interim dividend of N1.50 paid at mid-year. Additionally, return on assets increased to 20.17 per cent from 13.53 per cent, while return on equity rose to 63.19 per cent from 52.25 per cent, reflecting efficient income generation and a strengthened financial position.
Transcorp Hotels Plc  also recorded  a stellar financial performance for the 2024 fiscal year, achieving a record-breaking N70.13 billion in revenue and a 144 per cent jump in  PAT.
The company’s latest audited results reflect its strong operational strategy and expansion efforts.
The financial report shows significant growth across key areas. Revenue surged by 69 per cent compared to the previous year, reaching N70.13 billion from N41.46 billion in 2023.
PBT climbed 138 per cent to N22.61 billion from N9.48 billion, while PAT soared to N14.90 billion, up from N6.09 billion in the prior year. The company also strengthened its financial standing, reducing its gearing ratio from 17.48 per cent to 9.30 per cent, thanks to consistent loan repayments. Return on assets improved from 4.83 per cent to 10.59 per cent, while return on equity nearly doubled from 9.12 per cent to 18.50 per cent, highlighting strong profitability.
Transcorp’s strategic investments in energy, including OPL 28 and Transcorp Energy Limited’s renewable energy initiatives, demonstrate the company’s long-term commitment to enhancing Nigeria’s energy security. By exploring upstream and midstream opportunities, Transcorp is well-positioned to capitalise on the growing demand for domestic energy production, reducing reliance on imports and ensuring sustainable revenue generation. With Nigeria’s energy sector undergoing significant reforms, Transcorp’s proactive stance in renewable energy and gas development is expected to yield substantial returns.

Building Resilience for Future Growth
A crucial highlight of Transcorp’s 2024 performance is its strengthened financial structure. The company’s shareholders’ funds surged by 45 per cent to N271.7 billion, supported by profit  accretion to retained earnings. Meanwhile, total assets expanded by 42 per cent to N751.6 billion, indicating strong capital investment and asset growth.
The company’s prudent financial management has enabled it to reduce reliance on debt financing, positioning Transcorp as a more self-sustaining enterprise with a robust capital structure. By improving its liquidity profile and lowering financing costs, the company is now better equipped to pursue strategic expansion initiatives without excessive financial burden.

Implications for Investors and  Market
Transcorp’s exceptional financial performance holds significant implications for investors, industry stakeholders, and Nigeria’s broader economic landscape.
For shareholders, the increase in earnings per share from N0.40 to N1.45 underscores enhanced profitability, while the N10.1 billion dividend declaration demonstrates the company’s commitment to rewarding investors. As one of Nigeria’s most actively traded stocks, Transcorp’s robust earnings growth and capital appreciation potential make it an attractive investment opportunity.
Beyond financial markets, Transcorp’s expansion contributes directly to Nigeria’s economic development. The company’s growth in power generation enhances national energy security, while its hospitality operations bolster the country’s tourism and business travel sectors. Furthermore, Transcorp’s investments in energy diversification support Nigeria’s push for a more self-reliant and sustainable energy industry.

Future Expansion and Strategic Vision
Transcorp is positioning itself for continued growth and sectoral dominance. President/Group CEO Dr. Owen D. Omogiafo has outlined the company’s strategic priorities, which focus on deepening its presence across key industries while exploring new high-growth opportunities.
She said: “Our 2024 financial performance reflects the sustainable value creation strategy of Transcorp Group. We have been able to consistently record impressive growth across all indices year on year, despite the challenging macroeconomic environment. In the sectors we operate, we have delivered consistent growth by leveraging operational efficiency, strategic investments, and an uncompromising focus on value creation for our shareholders. Looking ahead, we will deepen our growth trajectory by seizing emerging opportunities, and strengthen our position across Nigeria’s power, hospitality, and energy sectors, even as we consider more sectors that take us closer to our purpose of improving lives and transforming Africa.”
The company is actively scaling power generation capacity to meet Nigeria’s increasing electricity demands, with plans to expand existing plants and explore alternative energy sources. In the hospitality sector, Transcorp is leveraging digital innovation and customer experience enhancements to drive sustained revenue growth. Meanwhile, in energy, the company is aligning its investment strategy with global sustainability trends, with a particular emphasis on renewable energy solutions and gas monetization projects.
Transcorp’s ability to seize emerging opportunities, combined with its disciplined financial management and strategic foresight, will be key in sustaining its remarkable growth trajectory.

Blueprint for Sustainable Corporate Growth
Transcorp Group’s record-breaking 2024 results are a testament to strategic execution, operational efficiency, and disciplined financial management. The company’s resilience amid economic challenges, coupled with its focus on innovation and sustainability, positions it as a model for corporate success in Nigeria.
By maintaining a balanced approach to growth, risk management, and value creation, Transcorp continues to redefine industry standards across power, hospitality, and energy. As it embarks on the next phase of its transformation journey, the company remains well-positioned to shape the future of Nigeria’s corporate landscape and drive long-term economic prosperity across Africa.