Nigeria’s largest diversified conglomerate, Transnational Corporation Plc, sustained its growth trajectory in 2022, ending the year with gross earnings of N134.7 billion.
This is a 21 per cent increase from 2021 where it recorded N111.2 billion.
According to the company, the growth was largely driven by the power and hospitality businesses.
Gross profit grew by 21 per cent, closing at N66.4 billion in 2022, from N54.8 billion in 2021. Despite facing inflationary pressures and adverse economic factors, the Group was able to sustain a gross profit margin of 49 per cent, reducing its cost-to-income ratio from 79 per cent in 2021 to 78 per cent in 2022.
Transcorp ended the year with a PBT of N30.3 billion, an increase from N28 billion in 2021.
This impressive performance resulted in an increase to the Company’s asset base, Shareholders’ Funds, and consequently, a 150% growth in dividend payment.
Speaking at its Investors and Analysts Conference Call last Thursday, Joseph Adegunwa, the Group’s Chief Financial Officer, noted that in spite of challenges posed by losses on foreign-denominated liabilities, the Group maintained its revenue growth in Q1 2023.
“We are optimistic about a full rebound in Q2 2023, with the increased-generated capacity from our power business and higher occupancy from our hospitality business, Adegunwa said.
Group President/CEO, Dr. Owen Omogiafo, also used the occasion to highlight Transcorp’s ESG initiatives and progress in reducing its carbon footprint, supporting local communities, and promoting diversity, equity, and inclusion.
According to him, “Transcorp is about sustainability. We will continue to execute our sustainability strategy of transforming our world to create positive environmental, social, and economic impact across our businesses and communities.
“We are optimistic, and we remain focused on our strategic objectives of fully optimizing our existing assets to ensure we consistently and sustainably deliver value for our stakeholders.”
He further explained that the company had no plan to list its power business on the stock market.
The conglomerate said it would continue to focus on the exploration of OPL 281 to realize its integrated gas-to-power strategy, redefine hospitality standards in Nigeria and beyond, and increase its daily average available and generated capacity in Nigeria’s power sector.
Under the Elumelu leadership, Transcorp has pursued a consistent policy of prudently rewarding shareholders with a progressive dividend policy.
The Company has declared a N2 billion dividend payment for 2022.
In Q1 2023, the Group recorded N32.4 billion in gross earnings, reflecting an improvement from N31 billion, despite facing economic and gas challenges that affected the power business’s generation capacity. 2022 will be the 5th consecutive year of unbroken dividends payment by Transcorp, since the Elumelu led team assumed leadership of the conglomerate. Prior to the change in ownership and management in 2011, Transcorp had operated since inception without dividends to its shareholders.
