Transcorp Hotels Plc has reported a profit before tax (PBT) of N22.613 billion for the year ended December 31, 2024, marking an impressive 138.48% year-on-year (YoY) growth.
The company has declared a final dividend of N0.64 per share, bringing the total dividend for the year to N0.74, including the N0.10 interim dividend previously paid.
The final dividend is set to be paid on April 16, 2025.
According to the audited financial statements reviewed by Nairametrics, Transcorp Hotels’ revenue surged by 69.18% YoY to N70.134 billion, up from N41.456 billion in the previous year.
Key highlights (2024 vs 2023 FY)
- Gross earnings: N70.134 billion +69.18% YoY
- Cost of sales: N20.415 billion +74.93% YoY
- Gross profit: N49.720 billion +66.93% YoY
- Operating expenses: N29.034 billion +68.24% YoY
- Operating profit: N26.029 billion +98.03% YoY
- Finance cost: N4.011 billion +2.74% YoY
- Profit after tax: N14.896 billion +138.18% YoY
- Earnings per share: N1.46 +143.33% YoY
- Cash and cash equivalents: N8.596 billion -4.27% YoY
- Total assets: N140.696 billion +11.58% YoY
- Total borrowing: N16.085 billion -22.12% YoY
- Shareholders’ funds: N80.519 billion +20.54% YoY
Company comments:
Emmanuel Nnorom, Chairman of Transcorp Hotels, in his comments, highlighted the Company’s commitment towards maximizing shareholder value.
“We remain deeply committed to enhancing shareholder value and delivering strong returns to our investors, ensuring that Transcorp Hotels continues to set the standard for hospitality excellence. The hospitality sector continues to be a vital contributor to Nigeria’s economy, and we are proud of Transcorp Hotels’ role in shaping the industry’s future.”
Building on this, Managing Director/CEO Uzo Oshogwe emphasized the company’s focus on innovation, exceptional service, and sustained growth despite economic challenges.
“Thanks to the dedication and passion of our teams, 2024 was a year of strong growth and significant milestones. Despite inflation and other macroeconomic challenges, we remain focused on delivering outstanding hospitality experiences, expanding our offerings, and implementing a strategy that unlocks the full potential of our business for all stakeholders.”
Key highlights of the result
Profit surge
- The impressive growth in pre-tax profit was driven by a strong increase in revenue, primarily from room sales, and a significant rise in other operating income, fueled by substantial foreign exchange gains.
- Room sales revenue grew by 70%, contributing 65% of total revenue, while foreign exchange gain surged by 392% to N4.585 billion in 2024, accounting for 85% of other operating income.
Expense Analysis:
- Although the cost of sales grew faster than revenue, the gross profit margin remains strong at 70.89%.
- Room sales, with an 84.5% margin, remain the most profitable segment, while food & beverages, at 42.9%, operate with tighter margins.
- Operational expenses increased, with energy costs contributing to it. Energy expenses surged from N2.425 billion in 2023 to N4.763 billion, reflecting a notable rise.
Balance sheet and financial position
- Total assets grew by 11.58% to N140.696 billion, reflecting continued business expansion.
- Total borrowings declined by 22.12%, reducing financial leverage. Interest expenses on borrowings fell 10.21% YoY to N2.798 billion, improving the interest coverage ratio to 9.30x from 4.22x in 2023, indicating that operating profit comfortably covers interest expenses.
- Shareholders’ funds rose by 20.54% YoY, driven by strong earnings growth and retained earnings, further strengthening the company’s financial position.
- Gearing ratio: The Company has over the years built and maintained a healthy debt capacity and creditworthiness. The gearing ratio improved from 17.48% in FY 2023 to 9.30% in FY 2024, due to the consistent principal repayment of third-party loans.
- Return on assets: Return on assets increased from 4.83% in FY 2023 to 10.59% in FY 2024.
- Return on equity: Return on equity grew from 9.12% in FY 2023 to 18.50% in FY 2024, demonstrating efficient income generation from equity.
Transcorp Hotels’ share price has remained flat at N126.10 since February 12, 2025, marking an 8.71% year-to-date (YtD) return as of February 26, 2025.
In 2024 it delivered an impressive 65% YtD gain in 2023 and over 1,000% YtD return in 2023, highlighting sustained investor confidence.
Overall, Transcorp Hotels has delivered another stellar performance, blending aggressive revenue growth with disciplined cost management.
- A 138% surge in pre-tax profits, despite rising costs, highlights the resilience of its high-margin room sales and the strategic advantage of a diversified revenue base.
- The decline in borrowings and improved interest coverage signal financial prudence, while shareholder rewards via dividends and a strong stock performance reinforce confidence.
- Yet, the soaring cost of sales demands scrutiny, particularly in the food and beverage segment, where margins remain tight.
- Sustaining this growth trajectory will require continued careful pricing strategies, cost control, and brand strength.
- Despite the slowdown, the flat price movement signals stability rather than a loss of confidence. The dividend declaration and strong earnings should continue to support the stock, but further upside may depend on fresh catalysts, such as expansion plans or improved economic conditions.
- For now, though, the numbers speak for themselves: Transcorp Hotels is not just growing, it’s thriving.
