Transcorp Grows H1 2018 Profit by 161% to N10.9b

By Dipo Olowookere

One of the companies listed on the Nigerian Stock Exchange (NSE), Transnational Corporations of Nigeria Plc (Transcorp), on Monday released its unaudited financial results for the first half of this year, which ended on June 30, 2018.

In the results obtained by Business Post, the firm recorded an impressive improvement within the last six months of its operations.

Specifically, Transcorp grew its profit before tax by 164 percent, while the profit after tax appreciated by 161 percent during the period under review.

Also, its revenue increased by 58.3 percent, while the Shareholders’ Fund went up 14.3 percent in the first half of this year.

Highlights of the financial statements showed that the Total Assets jumped to N290.3 billion in H1 2018 compared with N264.3 billion in the corresponding period of 2017.

The total liabilities closed at N184.4 billion as at June 30, 2018 against N171.6 billion as at June 30, 2017.

For the earnings per share (EPS), this stood at N11.60k in H1 2018 in contrast to N3.87k in H1 2017.

While the Return on Assets (ROA) increased to 3.8 percent as at June 30, 2018 from 1.9 percent as at June 30, 2017, the Return of Equity (ROE) appreciated to 10.3 percent from 4.5 percent.

A look at the company’s income statement showed that a total of N54.1 billion was generated as revenue in the period under review against N34.2 billion generated in the same period of last year.

However, the cost of sales went up to N29.5 billion in H1 2018 from N19.3 billion in H1 2017.

It was a similar scenario with the administrative expenses, which jumped by 34.5 percent to N7.6 billion from N5.7 billion last year.

The sum of N861.8 million was spent on Foreign Exchange loss on financial activities in the first six months of this year compared with N721.7 million used in the first six months of last year.

However, the gross profit posted by Transcorp in the financial statements was N24.6 billion in contrast to N14.9 billion in H1 2017.

The operating profit in the period under review was N17.4 billion compared with N9.5 billion, while the finance income recorded N472.6 million against N434.6 million last year.