…Amid High Inflation and Tight Credit Environment
Naija247news Business Desk | October 28, 2025
Lagos, Nigeria — Transnational Corporation Plc (Transcorp), one of Nigeria’s leading diversified conglomerates, posted a strong 38.9 percent year-on-year revenue growth to ₦413.43 billion for the nine months ended September 30, 2025, compared to ₦297.66 billion in the same period of 2024.
The group’s impressive performance came despite Nigeria’s tough macroeconomic landscape, marked by a 27 percent Monetary Policy Rate (MPR) and an 18.02 percent inflation rate as of September 2025, according to Cowry Research.
Transcorp’s gross profit rose by nearly 48 percent to ₦196.60 billion, reflecting improved operational efficiency in its power and hospitality subsidiaries. However, the company’s cost of sales also climbed by 31.6 percent to ₦216.83 billion, underscoring sustained pressure from energy costs and foreign exchange volatility.
Administrative expenses surged 63.6 percent to ₦52.52 billion, while impairment charges on financial assets rose by nearly 70 percent to ₦8.76 billion, largely due to higher credit risk provisions and rising cost of capital.
Operating Strengths Amid Cost Pressures
Profit from operating activities stood at ₦137.71 billion, representing a 21.1 percent increase from ₦113.74 billion recorded in 9M 2024. The group’s operating margin, however, slipped to 33.3 percent from 38.2 percent, indicating inflationary pressure on input costs and administrative overheads.
Transcorp recorded a finance income of ₦4.82 billion, up 552 percent from ₦739 million a year earlier, reflecting higher interest yields. Finance costs also expanded by 57.3 percent to ₦19.66 billion, leading to a net finance cost of ₦13.19 billion.
Consequently, profit before tax rose 18.0 percent year-on-year to ₦124.52 billion, while profit after tax climbed 20.4 percent to ₦91.41 billion, compared to ₦75.91 billion in 9M 2024.
Earnings and Market Valuation
Earnings per share (EPS) jumped dramatically to ₦5.34, from ₦1.10 in 2024 — representing a 385 percent surge. The company’s price-to-earnings (P/E) ratio stood at 9.02x, while earnings yield was 11.09 percent, reflecting attractive returns for investors in a high-interest environment.
At a current share price of ₦48.15, Transcorp’s market capitalization stood at ₦489.3 billion, with 52-week highs and lows at ₦61.95 and ₦39.75 respectively.
Balance Sheet Strength
Total assets grew by 25.2 percent to ₦940.89 billion, driven by increases in trade receivables, investment assets, and cash balances. Cash and cash equivalents rose by 40 percent to ₦25.17 billion, while investment in financial assets expanded by 157 percent to ₦46.91 billion.
Total liabilities increased by 31.6 percent to ₦631.32 billion, while shareholders’ equity grew by 13.9 percent to ₦309.57 billion, reflecting steady capital retention.
The conglomerate’s debt-to-equity ratio improved to 25.9 percent from 32.6 percent, while return on equity (ROE) stood strong at 29.5 percent, and return on assets (ROA) at 9.7 percent.
Corporate Actions
No interim dividend or bonus issue was declared for the review period, and no new corporate actions were announced by the company.
Analyst Commentary
Analysts at Cowry Asset Management noted that Transcorp’s growth trajectory underscores “resilience in Nigeria’s industrial and energy sectors despite tight monetary conditions.” They added that the group’s strategic diversification — spanning power, hospitality, and energy — positions it well to sustain profitability amid economic headwinds.
With Nigeria’s inflation trending above 18 percent and credit conditions tightening, Transcorp’s ability to deliver double-digit profit growth reinforces investor confidence in its long-term fundamentals.
Source: Company Financials, Cowry Research
Compiled by: Naija247news Business Desk
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Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.
