The first 9 months of this year was not too good for Transcorp Plc, one of the leading conglomerates in Nigeria. On Tuesday 29 October, the company released its financial statements for the period ended September 30, 2019 and the numbers were not better than the same of last year.

Analysis done by Business Post showed that there were declines in both top line and bottom line numbers. In the period under review, revenue generated by the firm went down to N58.3 bn from N79.9 bn, while gross profit dropped to N27.0 bn from N37.0 bn.

This was despite trimming the cost of sales to N31.3 bn from N42.9 bn, with administrative expenses cut down to N10.6 bn from N11.6 bn. This was mainly because of reduction in staff costs, management and incentive fees, rents and rates as well as advertising. Though, director’s remuneration, electricity and diesel cost, bank charges, provision for bad debts and others increased during the period being reviewed.

According to the results, the company generated N710.4 mn as other income, better than the N542.1 mn in the first 9 months of 2018, which came from dividend income on equity securities, while it made N17.1 bn as operating profit, lower than the N25.9 bn Q3-2018.

Transcorp further stated that its finance cost increased to N10.2 bn from N6.6 bn. In the first 9 months of this year, Transcorp declared a profit before tax of N7.4 bn versus N17.7 bn in Q3-2018, while profit after tax dropped to N6.7 bn from N16.0 bn.

Recall that last week, the headquarters of Transcorp in Lagos was gutted by fire and the management assured its shareholders that no serious damage was done to the property, while no vital documents were destroyed.

SOURCE: https://businesspost.ng/economy/transcorp-suffers-huge-decline-in-revenue-profit/amp/

It shall be well