Ikeja Hotel Grows Profit by 237.6% to N1.342bn

Ikeja Hotel Grows Profit by 237.6% to N1.342bn

Ikeja Hotel Plc bolstered its earnings performance in the first half of financial year 2024. Its unaudited financial statement for the period showed that profit surged by more than 237% year on year following an improved business activities.

The hospitality company’s bolstered its revenue performance in the first half of the year, up by 80% year on year to N8.2 billion from N4.567 billion in the first half of 2023.

Gross profit surged by N3.232 billion in the period from N1.510 billion 12 months earlier due to ability to tame costs of sales growth.

Ikeja Hotel Plc cost of sales inched higher slowly behind growth in revenue. Data showed that cost of sales for the period rose to N4.974 billion, translating to a year on year increase of 63% from N3.057 billion reported in the comparable period in 2023.

The hospitality company recorded a surge in overhead as inflation conditions worsened over the years. Sales and distribution expenses, including admin overhead rose in the period, albeit, in line with improved activities levels.

Operating profit came in at N2.2 billion in the first half of the year, up from N863 million posted 12 months earlier as Ikeja Hotel scored some wins against rivals in the hospitality market.

Its net finance costs brought earnings downward. Profit before tax settled at N2.058 billion in the first half of the year, up from about N541 million in the comparable period – a 280% year on year growth.

A spike in current tax value reduced the momentum, but keeps the company’s numbers stronger on year on year basis. Ikeja Hotel Plc profit after tax was about 238% higher when compared with about N398 million the company reported 12 months ago.  Oando Rallies after Approval to Acquire Agip Oil