Transcorp Hotels Plc has reported a profit before tax of N9.412 billion, representing a 108% YoY profit increase for the year ended 31 December 2023.
This was revealed in the company’s financial statement, according to the financial statements, Transcorp Hotels reported revenue of N42.701 billion, a 35.81% increase from the N31.442 billion reported the year prior.
A significant portion of this revenue was from room sales, which constitutes about 64% of total revenue.
The company’s key highlights for 2023 vs 2022 full year (FY) are:
Gross earnings- N42.701 billion +35.81% while, the cost of sales was N12.089 billion +33.55% YoY.
Also, gross profit soared to N30.612 billion +36.72% YoY, while
operating expenses were N18.103 billion +23.70% YoY.
The Operating profit was N13.207 billion +52.51% YoY, while
finance cost stood at N3.880 -6.33% YoY. Profit after tax was N6.098 billion +132.93% YoY, while earnings per share was N0.60 +130.77% YoY.
According to reports by Nairametrics, TRANSCOHOT emerged as one of the top-performing stocks on the NGX in 2023, boasting a share price appreciation of 1.023% YtD.
This year, the stock closed the most recent trading session at N97.90, bringing the YTD gain to 39.5% and rejoined the SWOOT category.
The Key highlights of the financial result include:
Profit surge: The substantial growth in pre-tax profit can be attributed to the higher growth in revenue relative to the growth in cost of sales.
Expense Analysis: Operational expenses have seen a persistent increase, with energy costs playing a significant role in driving overall costs higher. Energy expenses surged from N2.3 billion in 2022 to N2.87 billion, reflecting a notable rise.
Balance Sheet: Total assets experienced a slight increase, growing by 4.32% YoY to reach N125.687 billion. Despite this growth, the company’s net debt stood at N11.7 billion. However, it’s worth noting that interest expenses are well covered by operating profit.