Transnational Corporation Plc, a Nigerian conglomerate, sustained its growth trajectory in 2024, with earnings soaring over two–fold, primarily driven by a robust performance in its power business.
According to the Group’s audited financial statement for the year ended December 31, 2024, Transcorp’s revenue surged by 107 percent to N408 billion from the N197 billion recorded in 2023, driven by strategic investments and operational efficiency across its subsidiaries.
Its power businesses have continued to be significant contributors to the Group’s revenue. In 2024, Transcorp Power reported a 117 percent surge in its revenue to N337.8 billion from N155.5 billion in 2023, contributing 82.8 percent to the overall revenue growth.
The sector relates to subsidiaries, Transcorp Power Plc and TransAfam Power Limited with its subsidiaries, Afam Power Plc and Afam Three Fast Power Limited. The subsidiaries engaged in the generation and sale of electric power.
However, the Group’s strategic investments and efficient operations within the energy sector have positioned it as a key player in Nigeria’s power industry with its focus on operational efficiency and disciplined cost management contributing to these results.
Hospitality business also contributed 17.2 percent to the Group’s revenue, delivering a 69.2 percent increase to N70.1 billion in 2024 from N41.5 billion in 2023, driven by an improvement in occupancy rates, increased room prices, and strong growth in its food and beverage segment.
The hospitality business is made up of its direct subsidiary Transcorp Hotels Plc. with its subsidiaries, Transcorp Hotels Ikoyi Limited, Transcorp Hotels Port Harcourt Limited and Aura by Transcorp Hotels Limited.
The completion of a new 5,000-capacity event center further solidified the company’s market leadership in the hospitality industry.
Despite the decline in revenue from Trancorp’s corporate centers, the sector still contributed 4 percent to the Group’s revenue through its N14.4 billion revenue generated in 2024 from N16 billion recorded in 2023. This segment is the parent Company, Transnational Corporation Plc, and the other non-operating subsidiaries.
Although Transcorp Group operates in the energy and agro-allied sectors, these subsidiaries are in the start-up phase and have not started generating revenue. Rather, they add to its operations and overall profit for the period.
The agr0-allied sector relates to a subsidiary, Teragro Commodities Limited. The subsidiary is engaged in the manufacturing/processing of fruit concentrates from fruits. This subsidiary is currently non-operational.
Transcorp’s Oil and Gas business has two subsidiaries – Transcorp Energy Limited and Transcorp OPL 281 Limited. The companies are into the exploration, refining, and marketing of petroleum products.
Despite the 141.6 percent increase in Cost of sales to N212.3 billion which was largely due to elevated natural gas and fuel costs and consequently causing the Group’s gross margin to weaken to 48.0 percent in 2024, Transcorp’s profit before-tax grew by 132 percent to N136.7 billion from N58.8 billion in 2024 while profit after-tax rose by 189.7 percent to N94.1 billion from N32.6 billion in 2023.
Analysts at CardinalStone Research highlighted that the company’s profitability metrics— ROA and ROE remained resilient, to print at 14.7 percent and 41.0 percent, respectively. The results also revealed that Q4 ’24 performance was strong, underscored by sturdy growth in the company’s revenue, which grew by 67.2 percent YoY to N110.3 billion, in the period.
Operating income increased by 83 percent, amounting to N149 billion in 2024, up from N81.4 billion in 2023. Operating expenses also saw a significant rise of 105 percent year-on-year, totaling N62.8 billion in 2024, reflecting the impact of inflation and strategic investments in operational capacity.
Notably, net finance costs decreased by 45 percent to N12.4 billion, attributed to the complete repayment of foreign currency loans. In 2023, Transcorp recorded N8.7 billion in net foreign exchange losses on foreign currency borrowings while net foreign exchange gains surged to N4.3 billion from N945 million in 2023.
The Group’s total assets expanded by 42 percent, increasing to N751.6 billion in 2024 from N529.9 billion in December 2023. Shareholders’ funds grew by 45 percent, from N187.3 billion in December 2023 to N271.7 billion by year-end, supported by profit accretion to retained earnings.
Earnings per share stood at N1.45, a substantial increase from N0.40 in 2023. Consequently, the company declared a full-year dividend of N10.1 billion, representing N1.00 per ordinary share in 2024.
Speaking on the results, Owen D. Omogiafo, president and group chief executive officer of Transcorp, 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,” she said.
She concluded by saying that the growth trajectory will be deepened by seizing emerging opportunities and strengthening the position across Nigeria’s power, hospitality, and energy sectors. Consideration will also be given to expanding into more sectors that align to improve lives and transform Africa.
