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Transcorp Plc Reports 352% Surge in Profits as Share Reconstruction Lifts Sentiment
Transcorp Plc Reports 352% Surge in Profits as Share Reconstruction Lifts Sentiment
Transcorp Plc has made headlines with its latest financial results, showcasing an extraordinary 352% year-on-year (YoY) growth in profit before tax (PBT) for Q3 2024, amounting to N34.566 billion. This impressive performance has significantly increased the nine-month PBT to N105.485 billion, representing a 303% YoY growth and outperforming the entire 2023 pre-tax profit by 79%.
The company’s revenue also saw remarkable growth, soaring by 166% in Q3 2024 to reach N122.327 billion, up from N45.903 billion in the same quarter last year. For the nine-month period, revenue climbed to N297.664 billion, marking a 133% YoY increase. This surge in revenue can be attributed primarily to the power sector, which accounted for a staggering 84% of the group’s revenue, fueled by increased energy output and capacity charges.
Despite the stellar growth, Transcorp faced cost pressures due to rising natural gas and fuel prices. The cost of sales rose by 201% in Q3 2024, with these expenses comprising 47% of the total revenue. This increase impacted the gross profit margin, which declined to 38.75%. Nonetheless, the company has managed to maintain healthy profitability margins, with a pre-tax profit margin exceeding 30% for the nine months of 2024.
Transcorp’s balance sheet also demonstrated strong performance, with total assets rising by 29%, reaching N684 billion. Shareholders’ equity grew by 34%, bolstered by retained earnings, contributing to a reduction in leverage.
Transcorp Plc Reports 352% Surge in Profits as Share Reconstruction Lifts Sentiment
Owen Omogiafo, President and Group CEO of Transcorp, attributed this robust financial performance to the company’s commitment to innovation and operational excellence. She emphasized the importance of improving operational efficiency and investing in high-growth sectors like energy and hospitality.
The recent announcement of a share capital reconstruction plan on October 28, 2024, aimed at enhancing market performance, has further boosted investor sentiment. Following this announcement, Transcorp’s stock surged, closing at N48.60 per share, a staggering 339.8% increase from its previous close. This surge is a testament to strong investor confidence in the company’s future prospects.
As Transcorp continues to focus on strategic initiatives and long-term investments, this positive market sentiment is expected to attract further investment and solidify its position in the industry. With a remarkable track record, including a 666% year-to-date gain last year, the outlook for Transcorp remains bright, and investors are eager to see what the future holds.
