Transcorp Spikes by 10% after Bumper Earnings, Dividend
Transcorp Plc’s market value spiked by about 10% on Monday as investors’ price in its 2024 bumper earnings. The company’s net income surged by 188% year-on-year to N94.1 billion in 2024, from N32.6 billion in the same period last year.
The push has lifted the conglomerate market value higher to about N524 billion on the Nigerian Exchange, trading data tracked by MarketForces Africa revealed.
Hence, its earnings per share climbed by 263% year on year to N1.45 after share reconstruction in 2024 from N0.40 in 2023. The significant improvement in its bottom line was driven by strong top line performance in 2024.
Analysts noted that the Group sustained its strong growth trajectory across its financial indicators, reinforcing its market leadership and strategic positioning.
In its audited results, Transcorp reported significant year-on-year growth, with a revenue of N408 billion as of December 31, 2024, representing a 107% increase over the revenue of N197 billion in the previous year.
Inflationary economic conditions forced its overhead to surge. Its results showed that operating expenses rose by 105% year on year, to N62.8 billion in 2024, reflecting the impact of inflation and strategic investments in operational capacity.
A move to delevage its balance sheet triggered a reduction in debt costs. Transcorp Plc.’s net finance cost decreased by 45% to N12.4 billion, owing to the complete repayment of foreign currency loans.
Details from the results showed that Transcorp Plc’s balance sheet expanded in 2024. Total assets increased by 42% year on year from N529.9 billion in December 2023 to N751.6 billion at the end of 2024.
Its shareholders fund sharply, up by 45% year on year from N187.3 billion in December 2023 to N271.7 billion by year-end, supported by profit accretion to retained earnings. Its board of directors has approved a N10.1 billion full year dividend, representing N1.00 per ordinary share in 2024. #Transcorp Spikes by 10% after Bumper Earnings, Dividend CBN Opens FX Window for BDC to Stock up at NFEM Rate
