Transcorp Hotels Grows Profit by 169% to N6.616 Billion

Transcorp Hotels Grows Profit by 169% to N6.616 Billion

Transcorp Hotels Plc grew its profit line about 169% year on year to N6.616 billion in the first half of 2024, its unaudited financial statement posted on the Nigerian Exchange revealed.

The hospitality company’s net revenue climbed to N39.17 billion in 12 months from N18.464 billion in the comparable period amidst strong rivalry for customers’ patronage, wallets.

Transcorp Hotels reported that its sales costs increased by 71.09% year on year to N8.53 billion amidst price instability in the country. In the comparable period in 2023, the company’s cost of sales was N4.986 billion.

However, gross profit remained sturdy, growing by 57.21% year on year to N21.188 billion from N13.478 billion in the comparable period in 2023.

The hospitality giant recorded about 110% year-on-year increase in impairment loss on its financial assets in the period. Its unaudited financial statement showed that Transcorp Hotel finance assets depleted, causing impairment charges to grow to N9.494 billion from N4.524 billion in H1-2023.

Its operating expenses also advanced by about 51% year on year to N13.282 billion at the end of first half of 2024, from N8.819 billion 12 months ago.

Transcorp Hotel Plc operating income came in 115.86% stronger despite tough operating environment and increased rivalry in the hospitality industries from big players and marginal operators.

Its figure showed that operating profit hit N12.129 billion in the first half of 2024 from N5.619 billion in H1-2023, reflecting improved patronage and price adjustments.

Amidst elevated interest rate environment, the company’s finance costs still reduced in the current period by about 6.3% year on year to settle at N1.863 billion from N1.987 billion in the comparable period in 2023.

Transcorp Hotels finance income skyrocketed, up by 2,404% year on year to N208 million in H1-2024 from N8.3 million 12 months earlier. Up by 188% year on year, the hospitality company’s pretax profit surged to about N10.5 billion from N3.64 billion.

The company’s tax provision also grew by 262% year on year to N3.858 billion from N1.063 billion, reflecting improved earnings performance in the period.

At N6.615 billion at the end of first half of 2024, Transcorp Hotel Plc’s net profit was 156.83% above N2.461 billion reported in H1-2023. FG Doles Out N150,000 Grant to Outstanding MSMEs in Jigawa