Transcorp Hotels, the hospitality subsidiary of one of Africa’s leading listed conglomerates, Transnational Corporation Plc (Transcorp Group), posted a profit before tax of N10.5 billion in the first half of 2024, marking a significant profit growth of 188 percent year-on-year improvement from the N3.6 billion posted in the corresponding period in 2023.
Transcorp’s unaudited financial statements for the first half of 2024 reveal this, according to Persecondnews.
In the first half of 2024, Transcorp Hotel posted a revenue of N29.7 billion, marking a 61 percent year-on-year growth from the N18.5 billion revenue posted in H1 2023.
The group also recorded a 169 percent YoY growth in its net profit, as it recorded a net profit of N6.6 billion, in contrast with N2.5 billion posted in H1 2023.
The second quarter of 2024 was less profitable than Q2 2023, as Transcorp Hotel recorded a net profit of N1.6 billion, marking a 22% YoY decline from the N2.04 billion posted in Q2 2023.
Highlights of H1 2024 vs. H1 2023
• Revenue: N29.7 billion, +61% YoY
• Cost of sales: N8.5 billion, +71% YoY
• Gross profit: N21.2 billion, +57% YoY
• Gross margin: 71%, -200 bps, YoY
• Operating profit: N12.1 billion, +116% YoY
• Operating margin: 41%, -11%-points YoY
• Profit before tax: N10.5 billion, +188% YoY
• Profit for the period: N6.6 billion, +169% YoY
• Earnings per share: N0.65, +171% YoY
• Total assets: N136.8 billion, +8.5% YTD
Persecondnews recalls that in February 2024, Transcorp Hotels announced the complete sale of Transcorp Hotels Calabar, with the company receiving about N308 million as proceeds from the sale of the hotel in H1 2024.
However, the value of the deal, according to the financial statements, was about N2.5 billion.
Transcorp Hotels has sustained its remarkable financial performance, as shown in its released Q1 2024 unaudited financial statements for the period ended March 31, 2024.
The company recorded a 72% increase in revenue to N13.8 billion, compared with N8 billion reported in Q1 2023.
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