Transcorp group, subsidiaries pay N16.339bn interim dividends to shareholders

The shareholders of Transnational Corporation Plc (Transcorp Group) and its listed subsidiaries – Transcorp Hotels Plc and Transcorp Power Plc – have paid interim dividends of N16.339 billion to their shareholders for the first time in the companies’ history.

This milestone reflects Transcorp Group’s commitment to delivering sustainable value to its shareholders and demonstrates the strength and resilience of its diversified portfolio.

This comes at a time when the Nigerian economy is facing serious challenges, and many companies are closing down.

Details show that the three entities showcased strong performances and paid substantial interim dividends to their owners.

According to the results from the Nigerian Exchange Group for the first half of 2024, Transcorp Plc paid a dividend of N4.064 billion, Transcorp Power paid N11.250 billion as a dividend, while Transcorp Hotels paid its shareholders a dividend of N1.024 billion.

In total, the group paid a dividend of N16.339 billion. Despite the economic reforms creating hardship for both citizens and firms, Transcorp proved its financial strength.

TRANSCORP PLC

Transcorp Plc’s H1 2024 Results showed that its revenue increased by 114 percent to N175.4 billion compared to N82.1 billion in H1 in 2023.

Similarly, its Profit Before Tax jumped 283% amounting to N70.9 billion in H1 2024, compared to N18.5 billion in the same period last year.

At the end of H1 2024, the group’s total Assets Grew by 18%, from N529.9 billion in December 2023 to N625.1 billion in H1 2024.

Records show that 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.

Further details revealed that operating expenses increased by 50% over the period to N21.2 billion in H1 2024, reflecting the impact of inflation and the cost of operations.

TRANSCORP HOTELS

Transcorp Hotels reported its H1 2024 results which revealed a 61% increase in revenue to N29.7 billion compared to N18.5 billion in H1 2023.

Profit before tax also rose by 192% to N10.5 billion in H1 2024, compared to N3.6 billion in the same period last year.

Profit after tax grew by 157% year-on-year to N6.6 billion in H1 2024, compared to N2.6 billion in the same period last year.

Additionally, the occupancy rate rose to 81% in H1 2024 from 77% in H1 2023, and Revenue per Available Room (RevPAR) increased by 57% to NN162,999 from NN103,646 in 2023. Transcorp Hotels also paid a total interim dividend of N1.024 billion.

TRANSCORP POWER

Transcorp Power’s financial performance for H1 2024 was impressive. The company achieved a total revenue of N114.4 billion, marking a growth of 142% from N55.9 billion in H1 2023.

The company’s net finance cost fell by 37% to N1.3 billion, a reduction from N2.1 billion in H1 2023. Profit before tax recorded a growth of 214% to N50.9 billion, compared to N16.2 billion in the previous year.

Total assets grew by 45% to N289.9 billion as of June 30th, 2024, up from N200.3 billion at the beginning of the year, driven by robust operational performance. Shareholders’ funds increased by 64% to N94.6 billion as of June 30th, 2024, up from N57.8 billion as of 31st December 2023, boosted by retained earnings. Shareholders of the company received a total interim dividend of N11.25 billion.

The interim dividend paid to shareholders matches what was paid for FY 2023, an affirmation of Transcorp’s commitment to rewarding its shareholders progressively, as its long-term investments yield impressive returns.

Tony O. Elumelu, CFR, Group Chairman, Transcorp Group, in a statement following the release of the H1 2024 results 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.

Owen Omogiafo, OON, President/Group Chief Executive Officer of Transcorp Group, attributed the Group’s remarkable growth to its commitment to operational excellence, strategic management of its portfolio, and innovation. “Transcorp Group and its subsidiaries remain firmly committed to delivering exceptional and long-term value to our stakeholders.”

Analysts commend the Company’s effort in paying dividend in this trying times given that the economy is not favourable to businesses.

‘’That Transcorp could pay dividend at this harsh economic period is commendable and should not be taken for granted’’, says David Adonri, Chief Executive Officer of HighCap Securities Ltd

Recall the Manufacturers Association of Nigeria said recently that 767 manufacturers shut down operations while 335 became distressed in 2023.

They fingered exchange rate volatility, rising inflation and other economic challenges as having worsened the investment climate