Transcorp Hotels in the first nine months of 2024 grew its profit before tax by up to 191.1% from N5.63 billion in the same period of 2023 to N16.43 billion.
This is according to the company’s unaudited financial statement for the first nine months of the year which saw its revenues rise from N28.96 billion to N48.48 billion.
According to the report, the company’s revenue rose by 67.4% in the period under review.
Key Highlights of the report include;
- Revenue- N48.48 billion- +67.4% YoY
- Cost of Sales- N14.15 billion, +77.7% YoY
- Gross Profit- N34.33 billion, +63.4% YoY
- Other operating income- N4.96 billion, +323.9% YoY
- Operating expenses- N20.65 billion, +52.17% YoY
- Operating Profit- N18.63 billion, +117.8% YoY
- Finance Cost- N2.92 billion, -1.01% YoY
- Finance Income- N734.56 million, +1,769% YoY
- Profit before tax- N16.43 billion, +191% YoY
- Income Tax- N6.19 billion, +321% YoY
- Profit for the period- N10.23 billion, +162% YoY
In the period between July and September 2024, the company’s revenue stood at N18.76 billion from N10.50 billion in the same period of 2023. However, the company’s profit before tax in the third quarter of 2024 increased by 199.4% from N1.99 billion to N5.96 billion.
Commentary- the company during the period saw increases across all its revenue streams except accommodation and recreation services. The company generated N31.86 billion from rooms- an increase from N18.98 billion recorded in the same period of last year.
There was a N6.73 billion increase in revenues from food and beverages by the company from N8.19 billion in the first nine months of 2023 to N14.92 billion in the same period of 2024. Also, its revenues from Shop Rentals rose from N841.86 million to N1.13 billion marking an increase of 37.97% in the period.
Despite the increase in revenues, the company also saw increases in operating expenses, spending around N3.45 billion on energy- an increase from N1.75 billion in the same period of last year.
Furthermore, its employee cost more than doubled from N1.73 billion in the first nine months of 2023 to N3.69 billion in the corresponding period of 2024.
Following the release of its results, the Transcorp Hotel’s share price remained unchanged at N87.30k per share. However, in the nine months under review, Transcorp Hotel’s share price has lost around 11% of its value from N100 per share in January 2024 to N89.75k by the end of September 2024.