Tony Elumelu’s Transcorp Group achieves N197bn revenue, 94% PBT growth in 2023 – Report

Transnational Corporation Plc (Transcorp) has released its annual report and audited financial statements for the year ending December 31, 2023. The report showcases a stellar financial performance, with significant growth in both revenue and profit before tax (PBT) for Tony Elumelu’s Transcorp Group.

Financial Performance Highlights

According to the report, Transcorp recorded a 47% increase in gross earnings, rising from N134bn in 2022 to N197bn in 2023. Profit before tax saw an impressive 94% surge, escalating from N30bn to N59bn. Additionally, total assets grew by 20% to N530bn, driven by substantial increases in operating revenue and cash flow.

Chairman’s Statement

At the 18th Annual General Meeting held in Abuja on Monday, Board Chairman Tony Elumelu expressed pride in the company’s accomplishments. “I am pleased to present the Annual Report and Audited Financial Statements of Transnational Corporation Plc for the year ended 31 December 2023. 2023 was a defining year for Transcorp. We recorded exceptional financial performance, further enhanced our track record of success, and set in motion strategic initiatives that will transform our business and communities, delivering significant value to our shareholders,” he stated.

Sectoral Achievements

Hospitality Sector: Transcorp Hotels achieved a record-high occupancy rate of 81% in 2023, with an average daily rate of N139,000. This milestone underscores the resilience and appeal of the company’s hospitality services.

Power Sector: Transcorp Power also reported significant progress, including a combined available generation capacity of 710MW in 2023. Elumelu highlighted the company’s commitment to expanding its power generation capacity to 908MW in 2024 and exploring bilateral power sale opportunities.

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Challenges and Strategic Commitment

Despite facing challenges in the operating environment, particularly within the power sector, Elumelu reiterated Transcorp’s dedication to its strategic goal of becoming an integrated energy group. “Despite continuing uncertainty in our operating environment, our Group and subsidiaries recorded increased earnings and cash flow for the year, driven by a strong corporate governance culture, commitment to sustainability, and a consistent focus on improving the wellbeing of our people,” he added.

Financial Sector Issues

Elumelu drew attention to critical issues in the power sector, specifically the liquidity flow and payment assurance problems. Nigerian Bulk Electricity Trading Plc owes power generation companies over N2tn, with Transcorp’s share amounting to N250bn as of March 2024. The company expressed optimism regarding the Federal Government’s commitment to resolving these debts and urged prompt action to address the sector’s challenges.

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Corporate Philosophy and Future Outlook

Transcorp’s outstanding financial performance in 2023 reflects its resilience and dedication to creating value for its stakeholders. Elumelu concluded, “In line with our corporate philosophy of ‘Improving lives, Transforming Africa’, we are pleased with the significant progress we have made in creating value for our stakeholders, our customers, communities, workforce, and ultimately our shareholders.”

The remarkable financial growth reported by Transcorp for 2023 highlights the company’s robust strategy and effective execution. With substantial increases in revenue and PBT, and strategic plans for future expansion, Transcorp is well-positioned to continue delivering value to its shareholders and contributing positively to the broader community.

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