Transcorp Hotels has reported a profit before tax (PBT) of N4.5 billion at the end of 2022, a 172 percent increase year-on-year compared with a PBT of N1.7 billion in the previous year.
Transcorp Hotels also reported a 47 percent growth in revenue to N31.4 billion in 2022 from N21.4 billion the previous year. The group profit after tax closed at N2.6 billion at the end of the financial year.
The Managing Director and CEO of Transcorp Hotels, Dupe Olusola noted in her comments that the hospitality business delivered another year of exceptional revenue growth amidst the uncertainty in macroeconomic conditions.
“This impressive achievement is the highest revenue generated since the inception of the hotel and has set the group above pre-COVID performance levels. The full-fledged return of the international business travel segment and the bolstering leisure segment greatly contributed to this performance. We continuously strive to achieve a dynamic mix of business types while closely managing our hotel occupancy and guest experience,” Olusola added.
“Our excellent financial performance in 2022, despite adverse economic conditions, is the direct result of our concerted efforts and commitment to deliver excellent value to our stakeholders and customers.
“In 2023 and beyond, we will build on our successes and strengths and continuously review our business strategies to optimize our existing businesses, identify new opportunities, and accelerate execution,” the Transcorp Hotels CEO said.
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Olusola noted that the company’s board has approved that the sum of N1.33 billion be paid to shareholders as dividends for the year ended December 31, 2022, which is subject to the shareholder’s appoval at its annual general meeting.
The Chief Finance Officer, Oluwatobiloba Ojediran noted in her comments that the company has continued to maintain its disciplined approach to financial management during the year under review.
“With the hike in supply costs caused by the negative macro-climate, our continued efforts to drive cost efficiencies resulted in an improved net profit margin, which doubled from 7 percent in 2021 to 14 percent in 2022.
“Our focus on strategic financial management remained beneficial, as we exercised firm discipline in capital allocation. We recorded about a 2% increase in finance costs over the previous year, despite the cessation of the previously enjoyed COVID-19 concessions on interest rates granted by lenders,” the CFO stated.
He said that with strict adherence to the set strategies and financial discipline, the company will continue to experience positive improvement in its performance in 2023.
Also highlighting some non-financial figures, Ojediran noted that Transcorp Hotels now has a combined 5,000+ rooms, both in ownership and management, through its online booking platform, Aura by Transcorp Hotels.
