TRANSCORP’S ANNUAL PROFIT DOUBLES TO N34.1 BILLION

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Transnational Corporation of Nigeria (Transcorp) announced a significant achievement with its annual net profit doubling to N34.1 billion in the fiscal year 2023, as revealed in its unaudited financial statements. The surge in profit was attributed to a remarkable increase in revenue from the energy sector.

According to the report submitted to the Nigerian Exchange Group, Transcorp witnessed a surge in gross revenue, primarily fueled by its energy subsidiary, which recorded a turnover of N151.3 billion compared to N103.3 billion in the previous year. This surge propelled the conglomerate’s overall gross revenue to N194 billion, marking a 44% increase.

However, the company experienced a notable surge in finance costs; primarily due to increased expenses associated with servicing foreign debt. The depreciation of the naira against the dollar, resulting from multiple foreign exchange reforms, contributed to this rise in costs.

Despite the challenges posed by currency devaluation, Transcorp’s profit before tax accelerated by 84.5%, reaching N55.9 billion, while post-tax profit rose to N34.1 billion from N16.8 billion in the previous year.

In response to the company’s robust financial performance, financial analyst Isaac Akinloye emphasised Transcorp’s strategic resilience amid economic challenges. He highlighted the importance of effective leadership and adaptability in navigating external factors, particularly under the guidance of Chairman Tony Elumelu.

Transcorp’s success was further underscored by its diversified portfolio, which inclde agro-allied business and hospitality; positioning the conglomerate as a key player in Nigeria’s economic landscape.

Looking ahead, careful financial management will be crucial for sustained success as Transcorp addresses funding pressures and liabilities. Despite the surge in finance costs, the company’s strategic focus on revenue diversification and effective leadership bodes well for its continued growth and profitability.

 

 

 

 

 

 

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