Tony Elumelu, the chairman of Transnational Corporation Plc, expressed optimism on Friday as the company reported its unaudited Half-Year (H1) 2024 results, revealing a significant revenue increase from N82.1 billion in 2023 to N175.4 billion in 2024, a 114% rise. Additionally, profit before tax surged by 283% to N70.9 billion.
In a statement obtained by Vanguard, the Group also announced an interim dividend of 10k per share, matching the dividend declared for the full year of 2023. “This interim dividend declaration affirms Transcorp’s commitment to progressively rewarding its shareholders as its long-term investments yield impressive returns,” the company stated.
The Group reported that total assets grew by 18%, from N529.9 billion in December 2023 to N625.1 billion in H1 2024, while shareholders’ funds increased by 25% from N187.3 billion in December 2023 to N234.4 billion at the end of H1 2024 due to profits being added to retained earnings.
Operating expenses rose by 50% to N21.2 billion in H1 2024, reflecting the impact of inflation and operational costs, while net finance costs increased by 8% to N7.1 billion in H1 2024, up from N6.6 billion in H1 2023, owing to higher interest rates.
Tony Elumelu commented, “Transcorp exemplifies delivering a vision, executing through operational excellence, and consistently creating transformative impact. We are building to last across key sectors in Nigeria. In power, our generating capacity and output continue to increase. The turnaround at AEDC is bearing fruit, and we are innovating with our recent commitment to embed power in Abuja. In hospitality, Transcorp Hilton provides Nigerian excellence to domestic and international guests, with occupancy rates reflecting our investment in infrastructure and service. We look forward to continuing to deliver on that vision, rewarding our shareholders, and transforming Nigeria.”
Owen Omogiafo, President and Group CEO of Transcorp Group, attributed the remarkable growth to the company’s commitment to operational excellence, strategic portfolio management, and innovation. “Our outstanding H1 2024 performance demonstrates our resilience, relentless execution, and dedication to operational excellence, despite challenging macroeconomic factors. Transcorp Group and its subsidiaries remain firmly committed to delivering exceptional and long-term value to our stakeholders,” she said.
In related news, Transcorp Hotels Plc, a subsidiary of Transcorp Group, reported its H1 2024 results, showing continuous exponential growth. Revenue rose 61% to N29.7 billion compared to the previous year, and profit grew to N10.5 billion, a 192% increase over the N3.6 billion recorded in 2023. The company announced an interim dividend of N1,024,252,841 at N0.10 per 50 kobo ordinary share, subject to appropriate withholding tax and approval.
Key highlights of Transcorp Hotels H1 2024 results included a revenue increase of 61% to N29.7 billion, a profit before tax rise of 192% to N10.5 billion, and a profit after tax growth of 157% year-on-year to N6.6 billion. Occupancy grew to 81% in H1 2024, up from 77% in H1 2023, and revenue per available room (RevPAR) increased by 57% to N162,999 from N103,646 during the same period in 2023.
Dupe Olusola, Managing Director and CEO of Transcorp Hotels, noted the company’s strong half-year performance and growth in revenue per available room, driven by increased group and transient demand at Transcorp Hilton Abuja. She emphasized the company’s commitment to operational excellence, guest experience, and financial discipline, expressing confidence in continued growth and long-term value delivery to stakeholders. She also highlighted the upcoming launch of a 5,000-capacity event center later this year, expected to attract regional and international events to Abuja and contribute to Nigeria’s economic growth.
Chairman of the Board, Emmanuel Nnorom, emphasized that the company’s exceptional performance in the first half of the year underscores its resilience and strategic foresight in navigating the dynamic hospitality landscape.
