Sales accelerated to N82.1 billion from N62.9 billion following sharp rises in income from energy business Keywords/p
Nigeria's largest conglomerate by market capitalisation, Transnational Corporation (Transcorp), reported a banner increase in revenue and net profit from January through June, causing the bottom line to improve by more than one-third.
According to its recently issued financials, the two key performance metrics derived strength in the energy business of the conglomerate, whose other interests span hospitality, oil and gas, and agriculture.
Sales accelerated to N82.1 billion from N62.9 billion following sharp rises in income from energy sent out and capacity. The cash contributed by room service was also a pivot for revenue.
The stock has yielded 223 per cent since the turn of the year, profiting from the demand pressure that followed a brisk trade in its shares after its chairman Tony Elumelu racked up substantial shares in the corporation in April to outdo billionaire tycoon Femi Otedola in the race to become the top shareholder.
By PREMIUM TIMES' estimate, the Elumelu family now holds a 36 per cent stake in the firm.
Transcorp incurred N4.8 billion in foreign exchange loss on financing activities during the period, far from N1 billion a year ago, on account of a steep jump in the conversion rate for borrowings, mirroring the broader impact of currency reforms on corporate Nigeria.
Pre-tax profit stood at N18.5 billion, 38.6 per cent higher than one year earlier, while after-tax profit jumped to N16.1 billion from N12 billion.
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Transcorp recorded N2.2 billion as a net gain on equity instruments designated at fair value through other comprehensive income compared to a net loss of N846,000 reported in the same period last year.
That came from fair value gains on equity securities, helping push the total comprehensive income for the period to N18.3 billion, more than doubling the figure for half-year 2022.
"In spite of the challenging environment, our power businesses (Transcorp Power Limited & Transafam Power Limited) have sustained revenue growth increase by 32% and 30%, respectively, while our hospitality continues to outperform across all indices," said Owen G. Omogiafo, Transcorp's CEO and president in a separate document.
"We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders," she added.
