Transcorp’s 27% revenue shortfall shrinks profit by N13.6bn

Transnational Corporation of Nigeria Plc has reported a 27% slump in earnings for Full Year 2019, compared to the same period of 2018.

The details of the firm’s financial performance in the period under review are contained in its Unaudited Condensed Consolidated Financial Statements for the Year Ended 31 December 2019, posted on the website of the Nigerian Stock Exchange (NSE) on Tuesday.

Revenue plummeted by 27% from N104.163 billion at the end of December 2018 to N76.347 billion in the corresponding period of last year.

Profit Before Tax (PBT) fell by 64.3% to N7.997 billion at FY2019 from the N22.402 billion declared in the corresponding period of 2018.

Profit After Tax (PAT) plummeted from N20.627 billion at FY2018 to N7.065 billion at FY2019, implying a 65.7% fall.

Apart from the significant drop in earnings, a 10% rise in Administrative Expenses from N14.6 at FY2018 to N16.105 billion in the relative period of 2018 accounted for the drop in profit.

So also was the escalation in Finance Cost which leapt from N9.079 billion at FY2018 to N14.381 billion at FY2019, translating to a 58.4% increase.

Earnings Per Share (EPS) crashed by 74.1% to 5.93k at FY2019 from 22.91k at FY2018.

Incorporated in 2004, Transcorp is a diversified conglomerate with interests span hospitality, agribusiness, power and energy.

The firm in October 2019 won the bid for Afam Electricity Generation Company with a bid price of N105.3 billion (about $343.6 million).

Its outstanding shares currently stand at about 40.648 billion with a market valuation of about N40.242 billion. Transcorp’s dividend yield is 3.06%.

Transcorp currently trades on the floor of the NSE at N0.97 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After-Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now