TRANSCORP GROUP PLC – SUSTAINED REVENUE MOMENTUM AND PROFIT GROWTH ANCHOR STRONG Q3 2025 PERFORMANCE

Executive Summary

Transnational Corporation Plc (“Transcorp Group” or “the Company”) delivered a resilient and impressive financial performance for the nine months ended 30 September 2025, underscoring its strategic agility, diversified operations, and strong execution capability. Revenue rose 39% year-on-year to ₦413.4 billion (Q3 2024: ₦297.7 billion), reflecting broad-based growth across the Group’s power and hospitality segments. Profit Before Tax (PBT) increased 18% YoY to ₦124.5 billion, while Profit After Tax (PAT) grew 20.5% YoY to ₦91.4 billion, highlighting Transcorp’s ability to sustain profitability despite an inflationary and volatile macroeconomic environment.This performance reinforces Transcorp’s position as one of Nigeria’s leading conglomerates, with strategic investments that continue to drive industrial growth, energy expansion, and long-term shareholder value.

 Financial Highlights

₦’000 9M 2025 9M 2024 % Δ YoY Q3 2025 Q3 2024 % Δ YoY

Revenue 413,434,897 297,663,724 +39% 44,801,875 31,033,166 +44%

Cost of Sales (216,835,903) (164,812,755) +32% - - -

Gross Profit 196,598,994 132,850,969 +48% 44,801,875 31,033,166 +44%

Other Income 2,395,310 18,160,131 -87% 1,741,865 13,167,645 -87%

Impairment Loss (8,762,703) (5,156,201) +70% (174,847) (519,973) -66%

Administrative Expenses (52,523,010) (32,111,995) +64% (5,710,892) (3,157,751) +81%

Operating Profit 137,708,591 113,742,904 +21% 40,658,001 40,523,087 +0.3%

Finance Cost (Net) (14,838,845) (11,759,937) +26% (3,706,563) (4,946,969) -25%

FX Gain on Financing 1,646,065 3,502,378 -53% (13,457) 2,781 -584%

Profit Before Tax 124,515,811 105,485,345 +18% 36,937,981 35,578,899 +4%

Taxation (33,106,904) (29,576,561) +12% (2,776,229) (1,757,736) +58%

Profit After Tax 91,408,907 75,908,784 +20% 34,161,752 33,821,163 +1%

EPS (kobo) 534 110 +386% 336 83 +305%

Revenue Growth and Profitability

Transcorp Group sustained robust top-line growth, driven by enhanced operational performance in its power and hospitality divisions.

• Revenue surged 39% YoY to ₦413.4 billion, buoyed by higher power generation output and increased energy dispatch capacity, alongside rising occupancy rates and hospitality expansion — particularly from the commissioning of the 5,000-capacity Transcorp Centre Abuja.
• Gross profit rose 48% YoY to ₦196.6 billion, maintaining a solid gross margin of 48%, reflecting efficient cost management and pricing optimization.
• Operating profit grew 21% YoY to ₦137.7 billion, supported by operational efficiency, improved asset utilization, and revenue diversification.
• Net finance cost increased 26% due to higher interest expenses on borrowings, though moderated by foreign exchange gains of ₦1.65 billion from financing activities.
• Profit Before Tax (PBT) advanced 18% YoY to ₦124.5 billion, while Profit After Tax (PAT) rose 20.5% YoY to ₦91.4 billion, affirming Transcorp’s capacity to sustain bottom-line growth despite economic headwinds and cost pressures.

Overall, the Group’s revenue momentum and profitability reflect disciplined execution, effective balance sheet management, and sustained business expansion across all operating units.

Balance Sheet Overview

₦’000 30 Sept 2025 31 Dec 2024 % Change

Total Assets 940,887,393 751,563,305 +25%

Total Liabilities 631,316,236 479,870,257 +32%

Total Equity 309,571,157 271,693,048 +14%

Retained Earnings 149,685,466 112,317,867 +33%

Non-Controlling Interest 112,278,752 93,951,248 +19%

Borrowings (Long + Short Term) 80,045,645 88,512,242 -10%

Investment in Financial Assets 46,911,784 18,217,915 +158%

Cash and Cash Equivalents 25,174,946 17,966,955 +40%

Interpretation:

• Total Assets expanded 25%, reaching ₦940.9 billion, reflecting new capital investments and growth in financial asset holdings.
• Total Equity rose 14% to ₦309.6 billion, underpinned by retained earnings growth (+33%) and enhanced shareholder funds.
• Borrowings declined by 10%, indicating debt optimization and improved leverage management.
• Cash reserves grew 40%, signaling stronger liquidity and operational cash flow generation.
• Investment in financial assets more than doubled (+158%), underscoring Transcorp’s proactive diversification into yield-generating investments.

The Group’s balance sheet expansion demonstrates resilience and prudent capital allocation, supporting future expansion and shareholder returns.

Profitability Ratios and Efficiency Metrics

Ratio 9M 2025 9M 2024 Change

Gross Profit Margin 48% 45% +3pp

Operating Margin 33% 38% -5pp

PBT Margin 30% 35% -5pp

ROE 29% 28% +1pp

ROA 10% 9% +1pp

EPS (kobo) 534 110 +386%

Analysis: While operating margins contracted slightly due to higher administrative costs (+64%), profitability ratios remain strong. The ROE of 29% and ROA of 10% reflect efficient use of capital and assets to drive earnings. The impressive EPS growth of over 380% year-on-year further underscores the Group’s earnings momentum and shareholder value creation.

Strategic Context

Transcorp’s diversified business model—spanning power generation, hospitality, and investment holdings—continues to anchor its growth.

• Power Sector: The Group’s energy subsidiary recorded significant capacity growth, with consistent improvements in generation efficiency and grid contribution. Strategic investments in gas supply and plant maintenance enhanced availability and reliability.
• Hospitality: The hospitality arm achieved remarkable expansion through the Transcorp Hilton Abuja and the newly launched Transcorp Centre Abuja, positioning the Group as a dominant player in Nigeria’s premium hospitality market.
• Investments: The Company’s increased holdings in financial and property investments continue to contribute to earnings diversification and long-term capital appreciation.

The Group’s focus on operational excellence, sustainable practices, and technological innovation has solidified its leadership in key sectors critical to Nigeria’s economic growth.

Strengths

• Robust and diversified revenue streams from power and hospitality.
• Solid balance sheet with strong liquidity and declining leverage.
• Strategic asset expansion and new investments enhancing long-term growth.
• Consistent profitability and double-digit earnings growth.
• Strong brand equity and leadership under an experienced management team.

Weaknesses

• Rising administrative expenses driven by inflation and expansion costs.
• Decline in other income (-87%) due to reduced non-core investment gains.
• Marginal compression in operating margins amid higher financing costs.

Outlook

The outlook for Transcorp Group remains positive, supported by favorable industry dynamics and macroeconomic reforms that are expected to boost power and hospitality demand. The Group’s ongoing investments in capacity expansion, digital innovation, and sustainability initiatives will underpin growth momentum into FY2026. Potential challenges include exchange rate volatility, energy supply constraints, and cost inflation. However, Transcorp’s diversified portfolio and disciplined financial management position it to navigate these headwinds effectively.

Analyst Commentary

“Transcorp Group’s Q3 2025 results underscore the resilience of its diversified business model and operational depth. The strong revenue expansion and consistent profitability reaffirm management’s focus on value creation and efficiency. With ongoing investments in the power sector and hospitality infrastructure, Transcorp is strategically positioned to capitalize on Nigeria’s economic recovery and sustain its leadership across key industries.”

Conclusion

Transnational Corporation Plc has once again demonstrated strategic strength, financial resilience, and sustainable growth. The Group’s 39% revenue surge, solid profitability, and expanding asset base reflect disciplined execution and strong market positioning. As Transcorp deepens its footprint across Nigeria’s power and hospitality sectors, it remains well-placed to deliver superior shareholder returns, contribute meaningfully to national development, and drive long-term transformation within the Nigerian economy.