Elumelu upbeat as Transcorp Group grows half year revenue by 114%

The board chairman of one of Nigeria’s leading listed conglomerate, Transnational Corporation Plc, Mr. Tony Elumelu on Friday struck an upbeat note as the company reported its Half-Year (H1) 2024 unaudited results, showing revenue growth from N82.1 billion in 2023 to N175.4 billion in 2024, a 114% increase, and profit before tax rise of 283% to N70.9 billion.

The Group in a statement obtained by Vanguard also declared an interim dividend of 10k per share, matching the amount declared for full-year 2023.

“This interim dividend declaration is an affirmation of Transcorp’s commitment to rewarding its shareholders progressively, as its long-term investments yield impressive returns”, the company added.

The Group said 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 profit accreting to retained earnings.

Also operating expenses increased by 50% during the period to N21.2 billion in H1 2024, reflecting the impact of inflation and cost of operations while net finance cost increased by 8% to N7.1 billion in H1 2024. from N6.6 billion in H1 2023, owing to increase in interest rates.

The Group Chairman, Transcorp Group, Tony Elumelu stated: “Transcorp exemplifies 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. In power, our generating capacity and output continue to increase, the turnaround at AEDC is beginning to bear fruit and we are innovating, with our recent commitment to embed power in Abuja, bringing our vision of an integrated energy business ever closer. In hospitality, the Transcorp Hilton provides Nigerian excellence to our domestic and international guests, and our occupancy rates reflect our investment in infrastructure and service. We look forward to continuing delivering on that vision, rewarding our shareholders and transforming Nigeria.”

Also commenting on the H1 2024 performance, President/Group Chief Executive Officer of Transcorp Group, Owen Omogiafo, attributed the Group’s remarkable growth to its commitment to operational excellence, strategic management of its portfolio, and innovation.

She said: “Our outstanding H1 2024 performance is a demonstration of 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.”

In a related development, Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group has also reported its half-year 2024 results.

The results show continuous exponential growth of the NGX-listed leading hospitality brand, with revenue rising 61 percent to N29.7 billion when compared to the past year and profit growing to N10.5 billion, a 192 percent growth over the N3.6 billion recorded in 2023.

The Company said it is rewarding shareholders with an interim dividend of N1,024,252,841 at N0.10 for every 50 kobo ordinary share, subject to appropriate withholding tax and approval.

Highlights of Transcorp Hotels H1 2024 results showed that H1 2024 revenue hit N29.7 billion, up 61%, in comparison with N18.5 billion reported in H1 2023.

Profit before tax rose by 192%, amounting to N10.5 billion in H1 2024, compared to N3.6 billion during the same period last year while Profit after tax grew by 157% year-on-year to N6.6 billion in H1 2024, compared to N2.6 billion during the same period last year.

While occupancy grew to 81% in H1 2024, up from 77% in H1 2023, revenue per Available Room (RevPAR) increased by 57% to N162,999 from N103,646 during the same period in 2023.

In her comments, Managing Director/CEO, Dupe Olusola said the Company continues to deliver excellently on its record Q1 financial results, and further driving its second-quarter performance to new levels, achieving a combined strong half-year performance, with 61 percent revenue growth, setting another performance record.

“Revenue Per Available Room increased nearly 60 percent compared to the first half of 2023 due to an increase in both group and transient demand at our flagship property, Transcorp Hilton Abuja, even as our leisure business continues to wax stronger,” she stated. 

 “As we continue to combine our high standards with operational excellence, execution, exceptional guest experience and consistent financial discipline, we are confident in our ability to keep growing in line with our strategic objectives and delivering long-term value to all our stakeholders.”

 “We are excited about the launch of our upcoming 5,000-capacity event centre later this year,” Olusola added.

“This world-class development is expected to attract both regional and international events to Abuja, positioning Nigeria to get more share of the global Meetings, Incentives, Conferences and Exhibitions (MICE) industry estimated at $802.59 billion in 2023, thereby contributing to the nation’s economic growth”, the company added.

Chairman, Board of Directors, Emmanuel Nnorom, in his comment stressed 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.