Transcorp Hotels Grows Net Profit To N10.24bn In Q3

Transcorp Hotels Plc has declared a net profit of N10.24 billion in its third quarter (Q3) results for the period ended September 30, 2024.

The Company in its results released on the Nigerian Exchange (NGX) Limited showed that profit after tax rose by 151.47 per cent to N10.24 billion as against N4.072 billion in Q3, 2023.

Revenue grew by 67 per cent to N48.486 billion compared to N28,967 billion. Cost of sales moved from N7.963 billion to N14.156 billion, while gross profit increased by 63.45 per cent to N34.330 billion as against N21.004 billion.

Earnings per share stood at N1.00 as against 40 kobo as at September 2023. Occupancy rate grew to 83 per cent in Q3 2024 from 79 per cent in Q3 2023.

Also, Revenue per Available Room (RevPAR) grew by 64 per cent from N106,244 in Q3 2023 to N174,376 in Q3 2024; while operating expense margin reduced by four percentage points from 47 per cent in Q3 2023 to 43 per cent in Q3 2024.

Transcorp Hotels in a release signed by the group company secretary, Stanley Chikwendu stated that “the remarkable revenue growth is fueled by strategic pricing initiatives and robust sales efforts across all business segments, with a particular emphasis on the targeted Group and International Business segments.”

It added that “the company demonstrated prudence in resources management as its operating expenses margin improved year-on-year by four percentage points, a testament to the company’s dynamism in navigating market landscapes.”

It further said “the outstanding results posted by the Company not only highlight its resilience, it also demonstrates its unwavering commitment to delivering consistent value through strategic focus on enhancing customer experience, driving operational efficiency, and fostering innovation in service delivery.

Speaking of the results, chief financial officer, Transcorp Hotels, Oluwatobiloba Ojediran stated, “we are pleased with the excellent performance achieved in the third quarter of 2024. The steady improvement in our operating expense margin, along with significant total profit growth, highlight the resilience of our business model and the effectiveness of our cost management strategies.

“Our unwavering commitment to financial discipline and operational excellence has been instrumental in sustaining our growth trajectory, even in the face of rising inflation and other economic challenges.”

The managing director/CEO, Transcorp Hotels, Dupe Olusola said “Transcorp Hotels Plc is proud to maintain a remarkable growth trajectory, reflecting our unwavering commitment to enhancing shareholder value.

“Our award-winning customer service and exceptional properties position us as the premier gateway to Nigeria’s rich hospitality and cultural experiences. In the coming weeks, we will unveil another landmark addition to our flagship brand, further expanding our offerings.

“This is in line with our mission to redefine hospitality in Africa. We remain steadfast in our dedication to delivering value to our stakeholders.”