Transcorp Hotels has recorded a profit before tax of N10.5 billion in the first half of 2024, marking a 188% year-on-year performance from the N3.6 billion posted in the corresponding period in 2023.
This was disclosed in the group’s unaudited financial statement.
The hospitality company also posted a revenue of N29.7 billion, marking a 61% YoY growth from the N18.5 billion revenue posted in H1 2023.
It also recorded a 169% YoY growth in its net profit, as it recorded a net profit of N6.6 billion, in contrast with N2.5 billion posted in H1 2023.
The second quarter of 2024 was less profitable than Q2 2023, as Transcorp Hotel recorded a net profit of N1.6 billion, marking a 22% YoY decline from the N2.04 billion posted in Q2 2023.
In the report released, the company recorded N8.5 billion cost of sales which amounts to 71% YoY, the gross profit had N21.2 billion, +57% YoY, gross margin: 71%, -200 bps, YoY, operating profit: N12.1 billion, +116% YoY, operating margin: 41%, -11%-points YoY, profit for the period: N6.6 billion, +169% YoY, earnings per share: N0.65, +171% YoY and total assets: N136.8 billion, +8.5% YTD
During the period under review, the bulk of the group’s revenue came from rooms. The group recorded about N19.7 billion from rooms in H1 2024, representing a 60% improvement from the N12.3 billion posted in H1 2023.
It also generated N8.7 billion from food and beverage, marking a 72% improvement from the N5.0 billion generated in H1 2023.
The major source of the group’s gross profit was its rooms, as the gross margin on its room services was 85%.
During the period, Transcorp Hotel recorded an unrealized FX gain of N3.9 billion, which contributed to its net operating income of N4.2 billion. The group’s interest payment on debts and borrowing was about N1.4 billion, a year-on-year decline from the N1.8 billion incurred in H1 2023.
Transcorp Hotel’s energy costs increased by 81% YoY to N2.2 billion in H1 2024, from N1.2 billion as of H1 2023. The group also incurred a 129% growth in its hospitality costs to N2.43 billion, from N1.06 billion as of H1 2023.
These contributed to a 51% YoY increase in operating expenses, which reach N13.3 billion in H1 2024, compared to N8.8 billion in H1 2023.
Transcorp Hotels presently has a total loan portfolio of about N21.9 billion, with about N3.48 billion due in August this year.