In the first half of 2024, Transcorp Hotels reported a profit before tax of N10.5 billion, an 188% increase over the N3.6 billion reported in the same time in 2023.
The group’s unaudited financial results for the first half of 2024 contained this information.
Transcorp Hotel reported N29.7 billion in revenue for the first half of 2024, a 61% YoY increase over the N18.5 billion reported for the same period in 2023.
Additionally, it reported a 169% YoY increase in net profit, with N6.6 billion reported as opposed to N2.5 billion 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.
READ ALSO: Transcorp Earns 93.5% Profit Growth In 2023
Key Highlights H1 2024 vs H1 2023Revenue: N29.7 billion, +61% YoYCost of sales: N8.5 billion, +71% YoYGross profit: N21.2 billion, +57% YoYGross margin: 71%, -200 bps, YoYOperating profit: N12.1 billion, +116% YoYOperating margin: 41%, -11%-points YoYProfit before tax: N10.5 billion, +188% YoYProfit for the period: N6.6 billion, +169% YoYEarnings per share: N0.65, +171% YoYTotal assets: N136.8 billion, +8.5% YTDCommentary: 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.
Recall that in February 2024, Transcorp Hotels announced the complete sale of Transcorp Hotels Calabar, with the company receiving about N308 million as proceeds from the sale of the hotel in H1 2024.
However, the value of the deal according to the financial statements was about N2.5 billion.
