Ikeja Hotel Plc has reported a 188% increase in pre-tax profit in the first nine months of 2024.
The company recorded a pre-tax profit of N3.089 billion between January and September 2024 compared to N1.07 billion in the same period of 2023.
This is according to the company’s unaudited financial statement for the first nine months of the year posted on the NGX.
According to the report, revenues in the period grew by 63.78% from N7.69 billion between January and September 2023 to N12.59 billion in the same period of 2024.
Key highlights of the report
- Revenue- N12.59 billion, +63.7%
- Cost of sales- NN7.83 billion, +97.8%
- Gross Profit- N4.76 billion, +77.6%
- Sales and distribution expenses- N483.5 million, +79.8%
- Administrative and General Expenses- N1.26 billion, +33%
- Operating profit- N3.20 billion, +97.8%
- Finance income- N878.8 million, +159%
- Finance cost- N994.9 million, +11.9%
- Profit Before tax- N3.08 billion, +188%
- Tax expense- N1.08 billion, +124%
- Profit After Tax- N2.004 billion, +241%
- Earnings Per Share (EPS)- N93, +232%
In the third quarter of the year under review, the company’s revenues rose to N4.39 billion from N3.12 billion in the same quarter of 2023.
However, in the quarter, the cost of sales gulped N2.85 billion of the revenues putting the company’s gross profit in the quarter at N1.53 billion.
Between July and September 2024, the company’s finance cost grew from N299.1 million in 2023 to N334.08 million. However, its pre-tax profit in the period almost doubled from N529.09 million to N1.03 billion.
Commentary
- The company’s performance during the period seems impressive considering the macroeconomic malaise in the country with inflation shrinking the disposable income of many individuals, households and organisations.
- In the nine-month period under review, the bulk of the company’s revenue was generated from rooms followed by food and beverage sales. From room services, the company generated N8.57 billion between January and September 2024 from N4.97 billion in the corresponding period of last year.
- Furthermore, food and beverage sales returned N3.5 billion to the company in the first nine months of the year against N2.30 billion in the same period of 2023.
- The company incurred costs of N1.14 billion in maintaining its rooms during the period followed by 2.07 billion in food and beverage costs in nine months of 2024. However, in the same period of 2023 room and food and beverage costs stood at N844.4 billion and N1.14 billion respectively.
- Also, it spent around 1.91 billion on administrative expenses and 227.2 million on information and telecom systems.
