Transnational Corporation Plc (TRANSCORP) has released its unaudited financial statements for the quarter ending March 31, 2023. The group recorded a revenue of N32.4 billion, a 3.2% year-on-year growth from Q1 2022.
The group recorded a gross profit of N14.2 billion, down 6.6% year-on-year from the N15.2 billion gross profit recorded in Q1 2022. This drop is linked to the cost of sales that increased year-on-year to N18.1 billion from N16.1 billion recorded in the corresponding quarter last year.
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The group recorded a 15% drop year-on-year in operating profit from N10 billion in Q1 2022 to N8.5 billion in Q1 2023. This drop is attributable to the rising cost of administrative expenses year-on-year.
The Profit After Taxation (PAT) during the quarter in review dropped by 63% year-on-year from N5 billion in Q1 2022 to N1.86 billion.
During the period in review, Transcorp generated a positive net cash flow of N18.4 billion from operating activities against N5.9 billion generated in Q1 2022. However, the company recorded a negative net cash flow of N12.7 billion from investing activities as against the negative cash flow of N1.4 billion recorded in Q1 2022.
Transnational Corporation Plc owns assets in the oil and gas, hospitality, agro-allied, and power sectors. In Q1 2023, the group’s hospitality and power assets generated N8.25 billion and N24.1 billion in revenue respectively. The oil and gas and agro-allied units failed to generate any revenue within the quarter in review for undisclosed reasons.
Last week, Transcorp’s shares at the Nigerian Stock Exchange surged by over 23% when Nigerian businessman, Femi Otedola bought 2.245 billion shares (5.52%) of the group’s shares in an off-market deal. The share price moved from N1.37 at the start of the week and closed at N1.69 at the week’s end.
However, according to the CEO of Transcorp, Owen Omogiafo, the company had not received any formal notification of any relevant interest in its shares. According to Ms. Omogiafo, the Company is pleased to receive any new shareholder who purchases shares in the Company.
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“We welcome this expression of confidence in the leadership and management of Transcorp, as we continue our unwavering commitment to superior stakeholders’ returns, anchored in our ideology of Africapitalism. We remain resolute in executing our Group’s strategy of making strategic investments in key sectors within the Nigerian economy, our transformation agenda, and our ability to contribute positively towards building prosperity,” she noted.
