Transcorp records 158% growth in after tax profit for Third quarter

Transcorp-Hillton-Hotel
Transcorp Hillton Hotel Abuja. [Photo credit: Thisday Live]

The Transnational Corporation of Nigeria Plc, Transcorp, recorded a growth in the company’s profit after tax, PAT of 158 per cent Year on Year, YoY, in September 2017.

This was disclosed in a statement sent to PREMIUM TIMES, Sunday, which also announced the financial results for Transcorp’s third quarter, which ended 30th September, 2017.

The group’s Profit after Tax for the third quarter, Q3, of 2017, YoY, stood at N8.2 billion.

PAT, also known as After-tax profit margin is a financial performance ratio, calculated by dividing net profit after taxes by revenue.

A company’s after-tax profit margin is important because it tells investors the percentage of money a company actually earns per dollar of revenue.

According to the statement sent, “the company’s income statement revealed a Q3 2017 revenue of N56.76 billion, significant growth from N41.92 billion, a 35 per cent growth year on year.

“The company’s Gross Profit improved from N19.84 billion in the third quarter 2016 to N25.62 billion resulting in a 45 per cent increase year on year in Q3 2017 along with an Operating Profit of N16.81 billion compared to N11.58 billion reported in Q3 2016.

“Transnational Corporation of Nigeria Plc’s Net Finance Cost for Q3 2017 stood at N7.77 billion, down from N24.37 billion in Q3 2016 while Profit Before Tax was N9.04billion. A significant recovery from reported loss of N12.7billion in Q3 2016.

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“Q3 2017 Profit After Tax OF 8.19 billion, a 158% Year on Year growth from loss of 14.21billion in Q3 2016 and Total Comprehensive Income of N10.1billion compared to loss of 13.81billion in Q3 2016 has the conglomerate moving in the right direction for the second consecutive quarter.”

The statement also revealed that the company total assets grew to N287 billion from N232 billion as at December 31, 2016 while Shareholders Fund grew to N97 billion up from N86 billion in December 2016.

The Chief Executive Officer, Transcorp Plc, Adim Jibunoh, while commenting on the result, said the results were achieved ”largely through improved and sustained production capacity in the power business due to improved gas supply among other initiatives and the positive outlook in their hospitality business.”

“Our power plant has consistently ranked as the number one power producer in the country for Q3 2017 and we are on track for a stronger performance in Q4 2017, as we progress plans to increase our available capacity.

“In addition, improvements in general economic activity in Abuja (on the back of implementation of FY 2017 budget) and return to operations of newly upgraded room stocks will boost occupancy and top line performance for Transcorp Hotels in Q4 2017,” he said.

Transcorp Plc is a publicly quoted conglomerate with a shareholder base of over 300,000 investors.

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