Transcorp Hotels has reported N14.9 billion in revenue from food and beverage sales between January and September 2024, marking an impressive 82% increase from N8.19 billion during the same period in 2023.
This substantial growth comes despite inflationary pressures and rising costs of goods and services across Nigeria.
According to the company’s financial statement for the nine months ended September 30, 2024, the surge in food and beverage revenue highligths strong consumer demand, with the segment emerging as a critical driver of the hotel’s performance amid broader economic challenges.
The room revenue at its flagship property rose 68% to 31.87 billion from 18.91 billion the previous year. This is driven by the high level of occupancy and increased demand for the premium service offered by Transcorp Hotel Plc.
Transcorp Hotels also saw robust growth in shop rentals, which generated N1.13 billion in revenue, a 34% rise from N841.8 million recorded during the first nine months of 2023. The significant boost in rental income highlights the increasing value of the company’s retail partnerships and property assets, reflecting positive demand for commercial spaces within the hotel’s premises.
Transcorp Hotels’ ability to generate strong food and beverage revenue despite inflation suggests the company has adapted well to market condition.
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Nairametrics reported that financial report showed a total revenue of N48.48 billion, reflecting a year-on-year increase of 67.4%. The cost of sales stood at N14.15 billion, up 77.7%, while gross profit reached N34.33 billion, marking a 63.4% rise.
Other operating income saw an increase of 323.9%, totaling N4.96 billion, although operating expenses also rose by 52.17% to N20.65 billion. Operating profit surged by 117.8% to N18.63 billion. The finance cost marginally decreased by 1.01% to N2.92 billion, while finance income skyrocketed by 1,769% to N734.56 million.
Profit before tax reached N16.43 billion, representing a staggering 191% year-on-year increase, with income tax liabilities escalating by 321% to N6.19 billion, resulting in a profit for the period of N10.23 billion, an increase of 162%.
In the third quarter of 2024, Transcorp Hotels recorded revenue of N18.76 billion, a significant rise from N10.50 billion in the same quarter of 2023. Notably, profit before tax for this period soared by 199.4%, climbing from N1.99 billion to N5.96 billion.