Transcorp Hotels grows revenue 47% to N31.4bn in FY 2022

By Onome Amuge

Transcorp Hotels Plc recorded N31.4 billion revenue in its financial results for full year 2022, reflecting a 47 per cent growth in revenue compared to N21.4 billion posted for full year 2021.

The leading hospitality brand also reported a profit before tax (PBT) of N4.5 billion,a 172 per cent increase year-on-year, having ended 2021 with a PBT of N1.7 billion.  This is in addition to a profit before tax which stood at  N2.6 billion in the year under review..

Dupe Olusola, managing director/CEO of  Transcorp Hotels Plc ,in her remarks,noted that Transcorp Hotels delivered another year of exceptional revenue growth amidst the uncertainty in the macro-economic conditions.

The impressive achievement, Olusola said, is the highest revenue generated since the inception of the hotel and has set the Group above pre-COVID performance levels.

The managing director identified the full-fledged return of the international business travel segment and the bolstering leisure segment as major contributors to the hotel’s strong performance.  She further pointed out that the hotel has continuously strived to achieve a dynamic mix of business types closely managing its occupancy and guest experience.

“Our excellent financial performance in 2022, despite adverse economic conditions, is the direct result of our concerted efforts and commitment to deliver excellent value to our stakeholders and customers. In 2023 and beyond, we will build on our successes and strengths and continuously review our business strategies to optimize our existing businesses, identifying new opportunities and accelerating execution,” she said.

Olusola also disclosed that the company’s board has approved that the sum of N1.33 billion be paid to shareholders as dividends for the year ended December 31, 2022, which is subject to the shareholders declaration at its annual general meeting.

Oluwatobiloba Ojediran, chief finance officer, in her comments noted the company has continued to maintain its disciplined approach to financial management during the year under review.

According to Ojediran, despite the hike in costs of supplies caused by a negative macro-climate, Transcorp Hotel’s  continued efforts to drive cost efficiencies resulted in an improved net profit margin which doubled from seven per cent in 2021 to14 per cent in 2022.

“Our focus on strategic financial management remained beneficial, as we exercised firm discipline in capital allocation. We recorded about 2 per cent increase in finance costs over the previous year despite the cessation of the previously enjoyed COVID-19 concessions on interest rate granted by lenders,” she said.

The CFO added that with strict adherence to the set strategies and financial discipline, the company will continue to experience positive improvement in its performance in 2023.