How Transcorp made N85 billion revenue in 6 months of 2025

Transnational Company of Nigeria Plc delivered a powerful monetary efficiency within the first half of 2025, posting a file pre-tax revenue of N85.697 billion.

The spectacular first half 12 months consequence consists of N49.407 billion in Q1 and N36.290 billion in Q2.

An evaluation of the monetary statements exhibits that this spectacular revenue was primarily pushed by income progress, particularly from the ability section.

Income drivers

Transcorp reported complete income of N279.678 billion, a 59.43% enhance year-on-year, already representing 69% of the full-year 2024 income.

The surge was largely pushed by the ability section, which grew 225% to N243.086 billion, accounting for 87% of complete income.

The company middle contributed N35.8 billion, up 113% YoY, nearly matching the N47.5 billion from the hospitality section, and growing its share of group income to 13% from 9.57% in H1 2024.

The comparatively larger progress in income in comparison with price of gross sales buoyed gross revenue, sustaining a wholesome margin of 46.81%.

The President/Group CEO, Owen Omogiafo, OON, reassured buyers of continued progress potential:

“With our new 5,000-seat capability occasion centre, we’re positioning Nigeria because the epicentre of high-scale conferences and occasions, together with internet hosting the not too long ago concluded AFREXIM Annual Conferences 2025.

We repeatedly discover modern methods to additional speed up our progress trajectory whereas strengthening our management in Nigeria’s energy, hospitality, and power sectors.”

Revenue margin pressures

Regardless of sturdy income progress, price pressures impacted margins. Working margin declined by 25% to 33%, whereas pre-tax margin fell by 24% to 31%, reflecting the impact of direct prices and overheads although rising at a slower tempo than income however nonetheless compressed profitability.

Steadiness sheet dimension and well being

Transcorp’s stability sheet displays not solely revenue progress but in addition increasing monetary muscle. Complete property climbed to N907 billion, a 21% enhance from FY 2024.

Nonetheless, this enlargement got here with an increase in leverage. Complete borrowings elevated by 25% to N110.347 billion, indicating the usage of extra debt to finance progress.

Whereas this displays anticipated future money move progress, it additionally locations larger duty on environment friendly debt administration.

Leverage rose to three.17x from 2.8x in December 2024, but the corporate’s protection ratio of over 10x indicators sturdy capability to service obligations.

On the fairness facet, retained earnings grew 25% to N141 billion, offering a wholesome buffer for each investments and shareholder returns.

Supported by this sturdy fairness base, the corporate declared an interim dividend of N4.064 billion, representing 40 kobo per unusual share, topic to relevant withholding tax, demonstrating its dedication to delivering worth to shareholders.

This progress reinforces shareholders’ worth and indicators that the corporate is strengthening its inside reserves alongside asset enlargement.

In essence, Transcorp’s stability sheet exhibits a wholesome progress trajectory with increasing property supported by rising retained earnings and borrowings that stay inside a manageable proportion of the corporate’s monetary construction.

Nonetheless, a better look reveals some cautionary factors.

Commerce and different receivables account for a sizeable portion of property, tying up practically half of the stability sheet in quantities not but transformed to money.
That is compounded by a detrimental working money move of N22.6 billion in H1 2025, a reversal from the optimistic N7.543 billion in H1 2024.

Purchase, Maintain or Promote

Regardless of the moderation in short-term revenue progress to 21%, the corporate’s long-term trajectory, evidenced by a outstanding 5-year CAGR of 143%, demonstrates its resilience and capability for sustained worth creation.

Its management within the conglomerates sector, underpinned by the best market capitalization at N488 billion, reinforces its dominance and credibility.

Buying and selling at an earnings a number of of 8.16x barely above the sector common of 7x Transcorp continues to be attractively priced relative to its progress prospects and earnings energy.

Moreover, profitability momentum, sturdy retained earnings, and dividend payout capability spotlight the corporate’s capability to stability progress with shareholder returns.

The August 22, 2025, dealer compendium exhibits a consensus “Purchase” score from main homes resembling Bancorp Securities, Meristem, Lead Capital, and CardinalStone.

Total, the load of proof clearly helps accumulation for medium- to long-term buyers looking for publicity to a resilient and essentially sound conglomerate.