Key Financial Highlights
Revenue: Surged by 107% to ₦408 billion, up from ₦197 billio in 2023.
- Profit Before Tax (PBT): Grew by 132% to ₦136.7 billion, compared to ₦58.8 billion in 2023.
- Profit After Tax (PAT): Increased by 188% to ₦94.1 billion, up from ₦32.6 billion in 2023.
- Asset Base: Expanded by 42% to ₦751.6 billion.
- Shareholders’ Funds: Grew by 45% to ₦271.7 billion.
- Earnings Per Share (EPS): Rose from ₦0.40 in 2023 to ₦1.45 in 2024.
- Dividend Payout: Declared a total dividend of ₦10.1 billion, reflecting strong value creation for shareholders.
Operational Excellence and Strategic Growth
Transcorp’s ability to more than double its revenue within a year underscores the effectiveness of its business model and expansion strategy. Despite macroeconomic challenges such as inflationary pressures, rising interest rates, and currency fluctuations, the company demonstrated resilience and adaptability across its diverse business segments.
- Operating Income: Increased by 83% to ₦149 billion, driven by robust revenue optimization.
- Net Finance Cost: Reduced by 45% to ₦12.4 billion, following the full repayment of foreign currency loans, which minimized exposure to exchange rate volatility.
- Gearing Ratio: Improved from 32% to 21%, reflecting better financial leverage and balance sheet optimization.
While operating expenses rose by 105% to ₦62.8 billion, this increase was attributed to strategic investments in operational capacity, infrastructure, and workforce expansion, which have supported sustained revenue growth and enhanced competitiveness.
Power and Hospitality: Key Growth Drivers
Transcorp’s stellar performance was driven by its core business sectors—power and hospitality—both of which recorded significant growth in 2024.
Transcorp Power Plc
- Revenue: Increased by 115% to ₦305.9 billion, up from ₦142.1 billion in 2023.
- PAT: Surged by 165% to ₦80 billion, compared to ₦30.2 billion in 2023.
- Gross Profit: Grew by 89% to ₦142.2 billion.
- Gearing Ratio: Improved from 64.48% in 2023 to 29.70% in 2024.
- Dividend: Proposed a final dividend of ₦3.50 per share, bringing the total dividend for the year to ₦5.00 per share, including an interim dividend of ₦1.50 paid mid-year.
Transcorp Hotels Plc
- Revenue: Increased by 69% to ₦70.13 billion, up from ₦41.46 billion in 2023.
- PBT: Grew by 138% to ₦22.61 billion, compared to ₦9.48 billion in 2023.
- PAT: Soared to ₦14.90 billion, up from ₦6.09 billion in 2023.
- Gearing Ratio: Reduced from 17.48% to 9.30%, reflecting consistent loan repayments.
Strategic Investments in Energy
Transcorp’s investments in energy, including OPL 28 and renewable energy initiatives through Transcorp Energy Limited, demonstrate its commitment to enhancing Nigeria’s energy security. By exploring upstream and midstream opportunities, the company is well-positioned to capitalize on the growing demand for domestic energy production, reducing reliance on imports and ensuring sustainable revenue generation.
Building Resilience for Future Growth
Transcorp’s strengthened financial structure positions it for continued expansion and sectoral dominance. Key highlights include:
- Shareholders’ Funds: Increased by 45% to₦271.7 billion, supported by profit accretion to retained earnings.
- Total Assets: Expanded by 42% to ₦751.6 billion, reflecting strong capital investment and asset growth.
- Liquidity Profile: Improved, enabling the company to pursue strategic initiatives without excessive financial burden.
Implications for Investors and the Market
Transcorp’s exceptional performance holds significant implications for investors and Nigeria’s broader economic landscape:
- Shareholder Value: The increase in EPS and dividend payout underscores enhanced profitability and commitment to rewarding investors.
- Economic Development: Transcorp’s growth in power generation and hospitality contributes to national energy security and tourism, respectively.
- Sustainability: Investments in renewable energy and gas development align with global sustainability trends and Nigeria’s energy reforms.
Strategic Vision for the Future
Dr. Owen D. Omogiafo, President/Group CEO of Transcorp, outlined the company’s strategic priorities:
- Power Generation: Scaling capacity to meet Nigeria’s electricity demands.
- Hospitality: Leveraging digital innovation and customer experience enhancements.
- Energy: Focusing on renewable energy solutions and gas monetization projects.
“Our 2024 financial performance reflects the sustainable value creation strategy of Transcorp Group. We will deepen our growth trajectory by seizing emerging opportunities and strengthening our position across Nigeria’s power, hospitality, and energy sectors,” Omogiafo stated.
Transcorp’s record-breaking 2024 results highlight its strategic execution, operational efficiency, and disciplined financial management. As the company continues to innovate and expand, it remains well-positioned to drive long-term economic prosperity and redefine industry standards across Africa.