Transnational Corporation Plc has outlined strategies to build on the 173% revenue growth achieved in the first quarter 2024 (Q1’24).
The financial statement of the company for Q1’24 showed revenue growth of 173 per cent to N88.55 billion from N32.39 billion in the corresponding period of 2023 (Q1’22)
Following the same trend, Profit After Tax, rose by 1,832% to N35.92 billion Q1’23 from N1.86 billion in Q1’23.
President/Group Chief Executive Officer, Transcorp Plc, Dr. Owen Omogiafo while addressing stakeholders at an analysts conference call attributed the phenomenal growth to two factors.
The Transcorp hotel business, she noted, recorded increased patronage which resulted in improved occupancy rate up to 82%, while Average Daily Rates, ADR improved by 59% to N189,165 in Q1’24 from N119, 216 in Q1’23.
The second factor according to Omogiafor was significant improvement in its power business namely, Transcorp Power & TransAfam Power, due to an increase in power generation and sales tariff.
Speaking on the performance of the Transcorp hotel business, she said: “Revenue grew by 72% to N13.8 billion in Q1 2024 from N8 billion in 2023. Gross profit grew 75% to N9.9 billion in Q1 2024 from N5.7 billion during the same period in 2023.
“Despite the adverse impact of inflation and Naira devaluation on the cost of operations, our operating expenses were well managed, recording a 55% year-on-year increase.
“Consequently, the cost to income ratio improved significantly from 89% in Q1 2023 to 56% in Q1 2024.
“We ended the quarter with a profit after tax of N5 billion from N532 million recorded in the same period in 2023. This represents an 843% increase.”
Speaking further, Omogiafo said the impressive performance recorded by its two power subsidiaries was primarily driven by increasing in and maintaining existing generating capacity.