Transcorp records N21.2bn operating expenses in H1, blames inflation

Transnational Corporation (Transcorp) Plc says its operating expenses increased by 50 percent to N21.2 billion in the first half  (H1) of 2024.

In a statement highlighting the H1 2024 report on Monday, Transcorp said the surge in operating expenses reflects the impact of inflation and cost of operations.

“Operating Expenses: Increased by 50% period to N21.2 billion in H1 2024, reflecting the impact of inflation and cost of operations,” the statement reads.

“The interim dividend paid to shareholders matches what was paid for FY 2023, an affirmation of Transcorp’s commitment to rewarding its shareholders progressively, as its long-term investments yield impressive returns.”

According to the statement, Transcorp, also known as Transcorp Group, paid a total interim dividend of N4.06 billion.

Its subsidiaries, Transcorp Power and Transcorp Hotels, paid an interim dividend of N11.25 billion and N1.02 billion, respectively. 

“Shareholders of Transnational Corporation Plc (Transcorp Group), along with its listed subsidiaries, Transcorp Hotels Plc and Transcorp Power Plc, have paid interim dividends to their shareholders for the first time in the companies’ history,” the company said.

“This milestone reflects Transcorp Group’s commitment to delivering sustainable value to its shareholders and demonstrates the strength and resilience of its diversified portfolio.”

The group said it recorded a revenue growth of N175.4 billion — 114 percent higher compared to N82.1 billion in H1 2023.

The group also announced a 283 percent growth in its profit before tax (PBT) to N70.9 billion in H1 2024 as against N18.5 billion in the same period of 2023.

The company said it grew its total assets to N625.1 billion in H1 2024, up by 18 percent from N529.9 billion in December 2023.

According to the statement, shareholders’ funds increased by 25 percent from N187.3 billion in December 2023 to N234.4 billion in the period under review, due to profit growing to retained earnings.

Commenting on the result, Tony Elumelu, chairman of the Transcorp Group, said the group signifies delivering a vision, executing “through operational excellence and consistently creating the transformative impact that we are renowned for”.

“We are building to last across key sectors in Nigeria,” he said.

On his part, Owen Omogiafo, president and group chief executive officer (GCEO) of Transcorp Group, attributed the firm’s growth to its dedication to operational excellence, strategic management of its portfolio, and innovation.

She said Transcorp Group and its subsidiaries remain committed to “delivering exceptional and long-term value to our stakeholders”.