Transcorp Group posts 47.3% growth in revenue, 93.5% PBT by FY 2023

. As Hotels delivers 36% income increase

By Tochukwu Bliss, Abuja

Transnational Corporation Plc (Transcorp), a leading listed conglomerate, has reported a 47.3% increase in revenue to N197 billion in its full year (FY) financial results for the year ended December 31, 2023.

The Group also achieved substantial growth in its financial indicators, reinforcing its market leadership and strategic positioning.

This comes as one of its subsidiaries, Transcorp Hotels Plc also posted a record revenue of N41.5 billion in 2023, compared to N30.4 billion in 2022, a 36% growth year-on-year, while operating income also grew by 50%, to close at N13.1 billion as of December 2023, compared to N8.8 billion in December 2022.

Group highlights

In its audited results, Transcorp reported significant year-on-year growth with strong performance, a further demonstration of the Group’s strategic focus and effective execution.

• FY 2023 Revenue was N197 billion, a significant increase of 47.3%, compared to 2022.

• Operating Expenses saw an increase of 22.6% year on year, totalling N26.9 billion in 2023, reflecting the impact of inflation.

• Net Finance Cost increased by 46% to N22.6 billion, arising from interest on foreign currency loans, that has now been repaid.

• Profit before Tax surged by 93.5%, amounting to N58.8 billion in 2023, compared to N30.4 billion in the same period last year.

• Profit after Tax improved 91% year-on-year to N32.6 billion in 2023, compared to N17.1 billion in the same period last year.

• Earnings per share of the Group were N40 compared to N19 in 2022.

• Total assets grew by 20%, to N529.9 billion in full year 2023, up from N442.7 billion in December 2022.

Commenting on the results, President/Group Chief Executive Officer of Transcorp, Dr. Owen Omogiafo, said: “The financial results for 2023 underscore our Group’s strong operational performance and the results of our strategic initiatives. Notwithstanding the strong macroeconomic headwinds in the year, we achieved significant growth in revenue and profits, indicating our ability to navigate a dynamic market landscape effectively.

“Our primary objectives remain centered on achieving sustainable growth, enhanced operational and technical efficiency, and maximizing value for shareholders.”

Transcorp Hotels

In its FY2023 audited results filed with the Nigerian Exchange (NGX), Transcorp Hotels reported outstanding performance and set new revenue and profit records.

Other highlights are as followed:

• The Company’s total revenue for the year ended December 31, 2023, was N41.5 billion, compared to N30.4 billion on December 31, 2022, signifying a 36% increase.

• Operating Income grew by 50% from N8.8 billion in December 2022, to N13.1 billion in December 2023.

• Profit for the year grew by 133% from N2.6 billion in December 2022, to N6.1 billion in December 2023.

• Total Assets increased by 5% from N120.5 billion in December 2022, to N126.1 billion in December 2023

For the Managing Director/CEO, Dupe Olusola, the Company’s exceptional performance was achieved through continued dedication to excellence, unparalleled guest satisfaction and a resilient spirit that defines its commitment to delivering exceptional service and stakeholder value.

She said: “By strategically investing in innovations that align with our growth objectives, we continue to deliver these impressive numbers, beating our previous year’s records. Our considerable investment in our iconic Transcorp Hilton Abuja have been rewarded by significant increases in occupancy rates and guest satisfaction.  

“We are continuing this investment, with our 5,000-capacity event centre purpose-built to host local and international entertainment, conference, and exhibition events. This new world-class facility located within the premises of Transcorp Hilton Abuja is scheduled to open in the second half of 2024.

“I am immensely proud of the team’s dedication, resilience, and unwavering commitment to excellence, in providing an unparalleled hospitality experience.  We remain focused in our mission to continue exceeding expectations and setting new benchmarks in the African hospitality industry.”

 
Driven by its mission to improve lives and transform Africa, the Transnational Group cuts across strategic investments in the power, hospitality, and energy sectors.