Transcorp Hotels Plc has reported a profit before tax of N9.412 billion for the year ended 31 December 2023.
According to the financial statements reviewed by Nairametrics, Transcorp Hotels reported revenue of N42.701 billion, a 35.81% increase from the N31.442 billion reported the year prior.
A significant portion of this revenue was from room sales, which constitutes about 64% of total revenue.
Key highlights (2023 vs 2022 FY)
- Gross earnings: N42.701 billion +35.81% YoY
- Cost of sales: N12.089 billiion +33.55% YoY
- Gross profit: N30.612 billion +36.72% YoY
- Operating expenses: N18.103 billion +23.70% YoY
- Operating profit: N13.207 billion +52.51% YoY
- Finance cost: N3.880 -6.33% YoY
- Profit after tax: N6.098 billion +132.93% YoY
- Earnings per share: N0.60 +130.77% YoY
Commentary: TRANSCOHOT emerged as one of the top-performing stocks on the NGX in 2023, boasting a share price appreciation of 1.023% YtD.
- This year, the stock closed the most recent trading session at N97.90, bringing the YtD gain to 39.5% and rejoined the SWOOT category.
Recommended Reading: SWOOTs: UBA, Access Holdings, and Transcorp Hotel drop out, as Geregu Power remains
Key highlights of the result
- Profit surge: The substantial growth in pre-tax profit can be attributed to the higher growth in revenue relative to the growth in cost of sales.
- Expense Analysis: Operational expenses have seen a persistent increase, with energy costs playing a significant role in driving overall costs higher. Energy expenses surged from N2.3 billion in 2022 to N2.87 billion, reflecting a notable rise.
- Balance Sheet: Total assets experienced a slight increase, growing by 4.32% YoY to reach N125.687 billion. Despite this growth, the company’s net debt stood at N11.7 billion. However, it’s worth noting that interest expenses are well covered by operating profit.
Recommended reading: Transcorp Hotels Plc continues to win delivering impressive nine months performance and grows revenue by 55% year-on-year to 22.7bn