Home » Nigerian tycoon Tony Elumelu’s Transcorp reports $25.5-million profit in Q1 2024

Nigerian tycoon Tony Elumelu’s Transcorp reports $25.5-million profit in Q1 2024

This follows a record-breaking 2023 that solidified Transcorp's position as one of Africa's fastest-growing conglomerates

by Omokolade Ajayi
Tony Elumelu

Transnational Corporation (Transcorp Group), a leading diversified conglomerate led by Nigerian businessman Tony Elumelu, continued its impressive growth trajectory in the first quarter of 2024, recording a staggering 1,832.4-percent year-on-year surge in profit after tax to N35.92 billion ($25.5 million).

This follows a record-breaking 2023 that solidified Transcorp’s position as one of Africa’s fastest-growing conglomerates. The group’s Q1 2024 results, released recently, paint a picture of robust financial health across key metrics.

Transcorp’s power play boosts revenue

The impressive performance is attributed to a significant revenue increase of 173 percent to N88.55 billion ($62.9 million) compared to N32.4 billion ($23 million) in Q1 2023. This growth was primarily driven by a remarkable 209-percent year-on-year surge in the power business segment, reflecting the success of Transcorp Group’s integrated power strategy.

The hospitality business also saw a healthy 68 percent rise in revenue, fueled by an increased occupancy rate of 82 percent compared to 75 percent in the previous year.

Transcorp soars in Q1, profit exceeds full-year 2023

Despite a 40-percent increase in operating expenses to N8.2 billion ($5.82 million) due to inflationary pressures, and a 14-percent rise in net finance costs to N3.7 billion ($2.62 million) driven by slightly higher interest rates, Transcorp Group delivered a robust N35.92 billion ($25.5 million) profit in Q1 2024. This Q1 profit surpasses the N34.09 billion ($24.2 million) recorded for the full year 2023 when the company achieved a $160-million revenue milestone.

“Our Q1 2024 results demonstrate Transcorp Group’s resilience and commitment to excellence,” said Owen Omogiafo, president and group CEO in a press release. “Despite the challenges, we achieved growth across all major indices, focusing on operational efficiency at both our power plants, and maximizing opportunities within our hospitality business, showing our ability to adapt and succeed in changing markets. We will continue to deliver sustainable growth, operational efficiency, and value for our shareholders.”

Leadership and strategic focus drive growth

Transcorp Group, a leading listed conglomerate across Africa, has strategic investments in the power, hospitality, and energy sectors. Driven by its mission to improve lives and transform Africa, the group has built a strong reputation under the leadership of Tony Elumelu, one of the continent’s leading business executives.

Elumelu, through HH Capital, holds a significant 29.5-percent stake in Transcorp. His influence, combined with his leadership roles in Heirs Holdings, United Bank for Africa, and the Tony Elumelu Foundation, has been instrumental in steering Transcorp towards financial success.

Transcorp assets, retained earnings rise on strategic direction

As a result of its impressive performance, Transcorp’s total assets expanded from N529.92 billion ($376.3 million) as of December 31, 2023, to N573.99 billion ($407.53 million) as of March 31, 2024.

Shareholders’ equity and retained earnings also increased, rising from N187.3 billion ($133 million) and N68.92 billion ($48.9 million) to N224.35 billion ($159.27 million) and N93.77 billion ($66.6 million) respectively during the same period.

Transcorp’s strong Q1 performance underscores the effectiveness of its strategic direction. The group is well-positioned to capitalize on growth opportunities across its diverse sectors, delivering continued value to its shareholders.

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