Transcorp Delivers Strong Performance, Reports 41.4% PAT Increase in Q3

Transnational Corporation of Nigeria (Transcorp) Plc has released its results for the third quarter (Q3) year ended September 30, 2022, recording significant improvement across its major income lines.

Despite the extremely challenging business environment, the conglomerate with investments in the hospitality, power and oil & gas sectors, recorded impressive growth in its profit after tax which rose by 41.4per cent to N19billion up from N13.3billion recorded the previous year in September 2021.

The company also announced 47.7 per cent increase in profit before tax to N20.9 billion in Q3 2022 , higher than N14.1 billion recorded in the similar period of 2021.

The results filed with the Nigerian Exchange Limited (NGX) also showed that the Group’s total revenue rose by 12.5per cent from N85.6billion in Q3 2021 to N96.2billion in the period under consideration.

Operating Income also grew by 14.5per cent from N27.5 billion in September 2021 to N31.5 billion in September 2022, while Operating expenses for the quarter ended September 2022, stood at N16.0 billion, representing an increase of 30.9per cent compared to N12.2 billion recorded in the same period of 2021.

The results also showed that total assets increased by 1.3per cent from N416.0 billion in December 2021 to N421.2 billion in Q3 2022 due to the increase in Inventories, Prepayments and Trade and Other Receivables which cushioned the effect of the decline in Cash and Cash Equivalents, just as shareholders’ Funds rose to N161.8 billion, representing an 11per cent year-on-year increase from N146.3 billion due to profitability during the period. Reacting, Transcorp’s President/Group Chief Executive Officer, Owen Omogiafo, in a statement explained that the laudable performance this quarter was achieved as a result of the improved performance across all our businesses.

She said, “Despite the challenging operating environment, characterised by gas supply constraints, foreign exchange volatility and rising inflation, amongst others, the group improved profitability and performance during the period. Our hospitality business has sustained its strong growth trajectory, outperforming all indices. Our business model remains robust, thanks to the prudent and adaptive strategy we have taken across our operations.”

While expressing confidence in the company’s capacity to deliver even better results in the last quarter of the financial year, she said, “We remain focused on efficiency, cost leadership, and meeting market demand to consistently deliver profitability and value to all our shareholders.”