The hotel division of Transcorp Group, Transcorp Hotels Plc (TRANSCOHOT), has announced that its ongoing efforts to improve cost efficiency have increased the company’s full-year profit before tax (PBT) to N4.5 billion.
When compared to the N1.7 billion realized in 2021, the amount reflects a 172 percent year-over-year (YoY) growth, according to the firm.
Also, the hotel increased its income by 47%, from N21.4 billion the previous year to N31.4 billion this year.
“With the hike in costs of supplies caused by negative macro-climate, continued efforts to drive cost efficiencies resulted in an improved net profit margin which doubled from seven per cent in 2021 to 14 per cent in the year 2022,” it stated.
The company’s board have recommended a dividend of N1.33 billion for the 2022 fiscal year based on improved performance, subject to shareholder approval at its annual general meeting.
Notwithstanding the conclusion of the previously received COVID-19 interest rate reductions from lenders, the company saw an increase in finance expenses of around 2% over the prior year.
Dupe Olusola, the company’s managing director and chief executive officer, commented on the findings and said that the company had generated the most revenue since its establishment.
She claimed that the robust growth of the leisure segment and the full-fledged comeback of the international business travel segment were two major factors in the performance.
“We continuously strive to achieve a dynamic mix of schemes to efficiently manage hotel occupancy and guest experience. Our excellent financial performance in 2022 is the direct result of our concerted efforts and commitment to deliver value to our stakeholders and customers.”
She gave investors reassurance that the business will build on its success to keep ahead of trends, optimize current operations, and discover new business prospects in the sector.
“We remain committed to redefining hospitality in Africa through innovation and exceptional services as we unlock value for all our stakeholders,” Olusola added.
