Transcorp Hotels Plc’s unaudited financial statement, which was released on the Nigerian Exchange, showed that the company’s profit line increased by around 169% year over year to N6.16 billion in the first half of 2024.
In the midst of fierce competition for clients’ businesses and wallets, the hotel company’s net revenue increased to N39.17 billion in 12 months from N18.464 billion in the same period.
In the face of the nation’s pricing volatility, Transcorp Hotels said that its sales costs rose by 71.09% year over year to N8.53 billion. The company’s cost of sales during the same time in 2023 was N4.986 billion.
Nevertheless, gross profit held steady, rising from N13.478 billion in the similar period in 2023 to N21.188 billion, a year-over-year increase of 57.21%.
The hospitality giant recorded a 110% year-on-year increase in impairment losses 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 the first half of 2024, up from N8.819 billion 12 months ago.
Transcorp Hotel Plc’s operating income came in 115.86% stronger despite a tough operating environment and increased rivalry in the hospitality industry between 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 an elevated interest rate environment, the company’s finance costs have 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 the first half of 2024, Transcorp Hotel Plc’s net profit was 156.83% above the N2.461 billion reported in H1-2023.
