Transcorp Plc's Profit Surges 713% in H1 2021

Transnational Corporation of Nigeria Plc (Transcorp) recorded significant improvement across its major income lines in the first half of 2021 as its profit after tax jumped 713 percent to N6.5 billion.

The conglomerate disclosed this in its unaudited results for the half-year ended June 2021, which was submitted to the Nigerian Exchange. As of June last year, Transorp's profit after tax stood at N0.8 billion.

Transcorp Plc, which has strategic investments in the power, hospitality, and energy sectors, recorded a 53 percent revenue increase from N35.0bn in June 2020 to N53.3bn in the period under consideration. Also, gross profit grew by 60%, from N14.7bn in June 2020 to N23.5bn in June 2021, while profit before tax rose by 689% from N0.9bn in June 2020 to N7.1b in June 2021.

Commenting on the performance, Transcorp’s President/Group CEO, Mrs. Owen Omogiafo, reiterated the Conglomerate’s commitment towards producing long-term value and sustainable impact. 

“We are pleased to see the sustained growth in our group performance, which was achieved as a result of the improved performance across all the sectors we operate in. The revenue achieved in our power business grew by 48%, as a result of improved gas supply and increased generation capacity,” she stated.

Commenting on the hospitality sector, Omogiafo stated that the company’s strategic actions have resulted in a growth in revenue of up to 84%, despite the ongoing impact of the COVID-19 epidemic on the Nigerian and global hospitality industries. She expressed confidence in the company’s recovery strategies, citing the recent official launch of Aura, the company’s digital hospitality platform, as a testament to that confidence.

Investors responded positively to the company's report as Transcorp's shares jumped 9.68 percent to 96 kobo per share.