Transnational corporation of Nigeria (Transcorp) has doubled its profit after tax to N5.03 billion at the end of the first quarter following strong growth in revenue and an improvement in profit margin.
The conglomerate lifted profit after tax by 147 percent to N5.03 billion in the first three months of 2022, from N2.04 billion recorded in the first three months of 2021.
According to the unaudited report filed at the Nigerian Exchange Limited (NGX) for the period ended March 31, 2022, the company declared a revenue of N31.39 billion, a 28 percent increase as against N24.44 billion in the preceding year.
Leading the growth is the energy sent out income line which grew by 13 percent to N15.3 billion from N13.53 billion in the period under review. This is followed by the capacity charge income line which grew by 31 percent to N9.05 billion from N6.93 billion in the same period last year.
The conglomerate group recorded a profit before tax of N5.73 billion, a 129 percent increase from N2.50 billion recorded in the period under review.
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The cost of sales as recorded by the company amounted to N16.16 billion, a 15 percent increase from N14.01 billion recorded in March 2021, with natural gas and fuel cost eating up the company’s total cost of sales by 75 percent to N12.11 billion.
The increase in the cost of sales was also led by the cost of food and beverages, which advanced by 76 percent to N1.23 billion from N697 million over the review period.
The company recorded an increase in administrative expenses to N5.2 billion from N3.7 billion in the period under review.
Net finance cost in the first quarter of 2022 amounted to N3.79 billion, a 2.7 percent increase from N3.69 billion reported in the first quarter of 2021.
Transcorp group’s total assets stood at N417.6 billion in the first three months of 2022, a marked increase compared to N416 billion in the same period in the previous year, while its net assets in the first quarter of 2022, which is its total assets less its total liabilities stood at N151.04 billion.
Net cash generated from operating activities by the group amounted to N5.01 billion, a 2 percent increase from N4.9 billion recorded in March 2021.
Similarly, cash used in investing and financing activities amounted to N1.4 billion and N4.97 billion respectively in the first quarter of 2022 compared to N1.3 billion and N3 billion respectively in the first quarter of 2021.
Its cash and cash equivalent for the quarter appreciated by 197 percent to N12.83 billion from N4.32 billion in the same quarter in the previous year.
The conglomerate company, in the first quarter of 2022 reported earnings per share of N5.17 kobo from N1.79 kobo reported last year.
