Connect with us


Business and Brands

Transcorp Hotels posts 188% profit growth in 2024 half year

Published

on

Transcorp Hotels posted a profit before tax of N10.5 billion in the first half of 2024, marking a 188% year-on-year improvement from the N3.6 billion posted in the corresponding period in 2023.

 

Advertisement

This was disclosed in the group’s unaudited financial statements for the first half of 2024.

In the first half of 2024, Transcorp Hotel posted a revenue of N29.7 billion, marking a 61% YoY growth from the N18.5 billion revenue posted in H1 2023.

Advertisement

It also recorded a 169% YoY growth in its net profit, as it recorded a net profit of N6.6 billion, in contrast with N2.5 billion posted in H1 2023.

The second quarter of 2024 was less profitable than Q2 2023, as Transcorp Hotel recorded a net profit of N1.6 billion, marking a 22% YoY decline from the N2.04 billion posted in Q2 2023.

Advertisement
READ ALSO:   Why eNaira Is More Reliable Than Cryptocurrencies - CBN

Key Highlights H1 2024 vs H1 2023

  • Revenue: N29.7 billion, +61% YoY
  • Cost of sales: N8.5 billion, +71% YoY
  • Gross profit: N21.2 billion, +57% YoY
  • Gross margin: 71%, -200 bps, YoY
  • Operating profit: N12.1 billion, +116% YoY
  • Operating margin: 41%, -11%-points YoY
  • Profit before tax: N10.5 billion, +188% YoY
  • Profit for the period: N6.6 billion, +169% YoY
  • Earnings per share: N0.65, +171% YoY
  • Total assets: N136.8 billion, +8.5% YTD

Commentary: During the period under review, the bulk of the group’s revenue came from rooms. The group recorded about N19.7 billion from rooms in H1 2024, representing a 60% improvement from the N12.3 billion posted in H1 2023. It also generated N8.7 billion from food and beverage, marking a 72% improvement from the N5.0 billion generated in H1 2023.

READ ALSO:   Spectranet Network In Fresh Trouble As 'Customers Lament Over Poor And Epileptic Service'

The major source of the group’s gross profit was its rooms, as the gross margin on its room services was 85%.

During the period, Transcorp Hotel recorded an unrealized FX gain of N3.9 billion, which contributed to its net operating income of N4.2 billion. The group’s interest payment on debts and borrowing was about N1.4 billion, a year-on-year decline from the N1.8 billion incurred in H1 2023.

Advertisement

Transcorp Hotel’s energy costs increased by 81% YoY to N2.2 billion in H1 2024, from N1.2 billion as of H1 2023. The group also incurred a 129% growth in its hospitality costs to N2.43 billion, from N1.06 billion as of H1 2023.

These contributed to a 51% YoY increase in operating expenses, which reach N13.3 billion in H1 2024, compared to N8.8 billion in H1 2023.

Advertisement
READ ALSO:   HOW-MARKETS GLOBAL (UK) EMERGIES WITH INCLUSIVENESS OF AFRICA BUSINESSES AND PRODUCTS IN E-COMMERCE DIGITAL TRANSFORMATIONS WITH ONLINE CATALOGUE TO CONSUMER AND PRODUCERS

Transcorp Hotels presently has a total loan portfolio of about N21.9 billion, with about N3.48 billion due in August this year.

Disposal of Transcorp Hotels Calabar

Recall that in February 2024, Transcorp Hotels announced the complete sale of Transcorp Hotels Calabar, with the company receiving about N308 million as proceeds from the sale of the hotel in H1 2024.

Advertisement

However, the value of the deal according to the financial statements was about N2.5 billion.

Advertisement
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Also Read...