Transcorp Hotels Plc Reports N13.8 Billion in Q1 2024

Transcorp Hotels Plc recently reported that its first quarter (Q1), which ended March 31, 2024, unaudited financial statements posted on the Nigerian Exchange Limited (NGX) floor reflect its continued excellent financial results.

In Q1 2024, Transnational Corporation Plc (Transcorp Group), one of the biggest listed African conglomerates, reported N13.8 billion in revenue, a 72% increase from the N8 billion reported in Q1 2023. This is the hospitality subsidiary of Transcorp Group. 

Transcorp Hotels Plc's profit before taxes for Transcorp Hotels ended Q1 2024 at N6 billion, up 568 percent from N911.6 million in Q1 2023.

According to the report, the company's profit after tax rose to N5 billion in Q1 2024, an 844 percent increase from N531 million in the same period the previous year.

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Commenting on the report, Dupe Olusola, the Managing Director/CEO of Transcorp Hotels, said, "Our excellent first quarter performance marks the beginning of another great year for our company. We broke our monthly revenue record in March, demonstrating our commitment to excellence and superior performance.

"We leveraged opportunities across our segments for continuous growth. Demand in our International Business Travel and leisure segments remained strong in Q1 2024, delivering an industry-leading revenue per available room (RevPAR) growth of 74% and profit growth of over 84%." 

"We assure our stakeholders that we will continue to deliver exceptional value and leverage innovative tactics to expand our business portfolio rapidly." 

In addition, the Chief Financial Officer of Transcorp Hotels, Oluwatobiloba Ojediran, said, "This outstanding performance highlights the continuous improvement we have recorded in all parts of our business and how our operational efficiency has given us a competitive edge. We have continued breaking our revenue records and outperforming industry performance on all indices." 

Last week, Translational Corporation Plc, or Transcorp, reported a positive profit before tax of N45 billion. The company attributed this to robust topline performance across its subsidiaries in the power and hotel sectors for Q1 2024.

The Group's unaudited Q1 results for the period ending March 31, 2024, showed that revenue rose to N88.6 billion from the corresponding year, which settled at N32.4 billion in 2023. The surge is said to be a product of the Group's implementation of its power strategy in the power businesses and an increase in occupancy rate from 75.0% to 82.0% in the hotel business.

Transcorp Power reportedly contributed   N74.7 billion,   84% of Transnational Corporation Plc's revenue. Its operating income increased by 479% from N8.5 billion in Q1 2023 to N49.1 billion in Q1 2024, while operating expenses increased by 40% year on year to N8.2 billion in Q1 2024, reflecting the impact of inflation and cost of operations.

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Net finance cost rose by 14% to N3.7 billion in 2024 compared with the corresponding period, which settled at N3.2 billion in 2023 due to a slightly higher interest rate review in line with MPR.

Profit before tax was N45.7 billion in 2024 when compared with a corresponding period, which settled at N2.9 billion in 2023, while profit after tax improved by 1,832% to N35.9 billion in Q1 2024 when compared with a corresponding period, which settled at N1.9 billion in Q1 2023.

The company's total assets increased by 8.3% from N530 billion in December 2023 to N574 billion in Q1 2024, while shareholders' funds increased by 20% from N187 billion in December 2023 to N224 billion at the end of Q1 2024 due to profit accreted to retained earnings.

In April this year, Transcorp Hotels Plc 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.