Transcorp Sustains Earnings Growth In First Quarter 2017

Transnational Corporation of Nigeria (Transcorp) Plc, presented its un-audited result for the first quarter ended March 31, 2017, showing that the conglomerate was able to sustain its earnings performance for the first quarter ended March 31, 2017.

For instance revenue for the period rose to N15.767 billion from N13.192 billion in 2016, representing an increase of about N2.575 billion or 19.51 percent, while cost of sales rose by N1.75 billion or 29.61 percent to N6.94 billion from N5.91 billion.

Administrative expenses rose to N2.716 billion from N2.696 billion; while operating profit stood at N4.227 billion, up by N978 million or 30.1 percent from N3.249 billion to N4.227 billion. Finance income fell slightly to N217.229 million from N293.131 million; finance cost however jumped to N2.394 billion from N1.812 billion, resulting in net finance cost of N2.492 billion, as against N1.519 billion in the first quarter of 2016.

Profit before tax stood at N1.734 billion from N1.729 billion, taxation dropped from N524.124 million to N238.373 million; resulting in profit after tax of N1.496 billion, which translates to 91 kobo Earnings Per Share, as against the previous N1.205 billion or 112 kobo.

Meanwhile, the board had on Monday announced the appointment of former chief executive of Continental Trust Bank Limited, Adim Jibunoh as replacement for Emmanuel Nnorom, with effects from June.

Until his appointment as chief executive of Transcorp, Nnorom was an executive director at United Bank for Africa Plc. The change may not be unconnected with the need to reposition the company for sustainable growth and returns for shareholders.