Transcorp Hotels Plc Announces 20 Kobos per Ordinary Share for 2023 FY

Transcorp Hotels Plc recently released a positive result for the 2023 audited financial year and an increase in dividend payout to shareholders despite various macroeconomic challenges encountered during the period of record.

In the financial report released for the year ending December 31, 2023, the firm announced that it witnessed an astounding performance, which can be attributed to the management's move to improve its innovations.

Transcorp Hotels Plc generated a total of N41.45 billion in revenue in the 2023 FY, which is said to be an increase of over 36.2% from the previous FY, which was settled at N30.44 billion in 2022. Thanks to the contribution from Rooms and Food & Beverage, which recorded an increase of 64.4% and 31.45% in 2023, it was said to have added a lot to the revenue the company witnessed in 2023 FY.

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The growth in revenue of Transcorp Hotels Plc can be attributed to the management's growth in important business segments, such as its Rooms service in Transcorp Hilton Abuja and Transcorp Hilton Calabar, which continue to be the preferred destinations for prominent guests and serve travellers from all over the world for both business and leisure needs.

Transcorp Hotels Plc's cost of sales rose to N11.67 billion in 2023, which showed an increase of 34.1% from N8.7 billion reported in 2022.

Transcorp Hotels Plc reportedly spent N3.87 billion to maintain rooms in 2023, while the amount spent on food and beverages stood at N7.55 billion in 2023, up from N4.85 billion in 2022. The firm's other operating costs stood at N251.54 million in 2023, up from N482.97 million reported in 2022. 

The group's gross profit was N29.79 billion in 2023, up 37% from the N21.74 billion reported in 2022.

Transcorp Hotel's Plc gross profit margin decreased to 71.85% in the reviewed year from the previous year, which settled at 71.41% in 2022.

Transcorp Hotel’s Plc Operating Expenses

Operating profits for Transcorp Hotels Plc increased by 49.9% to N13.14 billion in 2023 from N8.77 billion in 2022, while operating expenses increased by 24.5% to N17.26 billion in 2023 from N13.86 billion in 2022.

Transcorp Hotels Plc's operating expenses increased by N2.55 billion in management costs in 2023, up from N1.82 billion in 2022. The firm also recorded N2.43 billion in energy costs in 2023, up from N2.03 billion reported in 2022.

Transcorp Hotels Plc reported N3.9 billion in financing costs for the year under review, down 5.7% from the N4.14 billion reported the year before. Meanwhile, finance income increased dramatically to N241.86 million in 2023, up 27.7% from N8.6 million in 2022. 

According to the breakdown of finance costs, Transcorp Hotels Plc's interest on debts and borrowings was N3.12 billion in 2023, down 4.7% from N3.27 billion in 2022. Interest on intercompany loan payables was N1.01 billion in 2023, down from N809.2 million in 2022. 

Transcorp Hotels Plc's financial performance was strong, resulting in a profit before taxes of N9.48 billion in 2023, up 104.6% from N4.663 billion in 2022.

The significant increase in profit before taxes can be attributed to the higher revenue growth rate compared to the growth rate in sales costs.

Transcorp Hotels Plc ended the 2023 fiscal year with a whopping N6.25 billion profit after taxes, compared to the previous year, which settled at N2.86 billion recorded in 2022. This was despite having tax expenses of approximately N3.23 billion in 2023 compared to N1.77 billion in 2022.

It was reported that the Board of Directors recommended an interim and final dividend of N2.05 billion or 20 kobos per ordinary share for the year ending in 2023, amidst the remarkable performance of 2023.

Transcorp Hotel's Plc Total assets

Transcorp Hotels Plc's total assets increased to N126.09 billion in 2023 from N120.5 billion in 2022, a nearly 5% increase.

The breakdown of Transcorp Hotels Plc's total assets revealed that current assets increased to N17.84 billion in 2023, a 77% increase from N10.08 billion reported in 2022, while non-current assets decreased to N108.25 billion in 2023, down 1.9% from N110.41 billion in 2022.

Transcorp Hotels Plc's current liabilities increased by 10.3% to N32.3 billion in 2023 from N29.31 billion reported in 2022, while its non-current liabilities decreased by almost 5% to N26.99 billion in 2023 from N28.39 billion in 2022.

As a result, Transcorp Hotels Plc's total liabilities in 2023 will be N59.3 billion, which signifies a 2.77% increase from the previous year, which settled at N57.7 billion recorded in 2022.

In 2023, the total assets-to-liabilities ratio was 47.03%, down from 47.89% in 2022.

Transcorp Hotels Plc group's total equity during the review period was N66.8 billion, representing 6.38% from N62.8 billion in 2022. This increase was primarily due to retained earnings, which increased from N45.21 billion in 2022 to N49.3 billion in 2023.

What Is Transcorp Hotels Plc Share Price?
As of the time of this published article, the share price of Transcorp Hotels Plc is N97.90.