Cost efficiency pushes Transcorp Hotels profit to N4.5 billion
Transcorp Hotels Plc (TRANSCOHOT), the hospitality subsidiary of Transcorp Group, has stated that its sustained efforts to enhance cost efficiency has pushed the company’s 2022 full year profit before tax (PBT) to N4.5 billion.
According to the company, the figure represents a 172 per cent increase year-on-year (YoY), when compared to N1.7 billion achieved in 2021.
Also, the hotel achieved 47 per cent growth in revenue to N31.4 billion from N21.4 billion recorded in the previous year.
“With the hike in costs of supplies caused by negative macro-climate, continued efforts to drive cost efficiencies resulted in an improved net profit margin which doubled from seven per cent in 2021 to 14 per cent in the year 2022,” it stated.
On improved performance, the directors of the company have recommended a dividend of N1.33 billion for the 2022 financial year subject to shareholders approval at its yearly general meeting.
The company recorded about two per cent increase in finance costs over the previous year despite the cessation of the previously enjoyed COVID-19 concessions on interest rate granted by lenders.
Commenting on the results, Managing Director/Chief Executive Officer, Dupe Olusola, said the firm recorded the highest revenue generated since its inception.
According to her, the full-fledged return of the international business travel segment and bolstering leisure segment contributed immensely to the performance.
“We continuously strive to achieve a dynamic mix of schemes to efficiently manage hotel occupancy and guest experience. Our excellent financial performance in 2022 is the direct result of our concerted efforts and commitment to deliver value to our stakeholders and customers.”
She assured shareholders that the company would consolidate on the performance to stay ahead of trends and optimise existing businesses, while identifying new opportunities in the industry.
“We remain committed to redefining hospitality in Africa through innovation and exceptional services as we unlock value for all our stakeholders,” Olusola added.