MON. 06 MARCH 2023-theGBJournal | Transcorp Hotels Plc, the hospitality subsidiary of diversified conglomerate, Transcorp Group, reported stellar growth in profits in FY2022, driven by growth in international business travel and it leisure segment which has also seen robust growth since COVID-19 restrictions began lifting globally.
The company reported a profit before tax (PBT) of N4.5 billion, a 172% increase year-on-year, having ended 2021 with a PBT of N1.7 billion.
It also reported a 47% growth in revenue to N31.4 billion in FY2022 from N21.4 billion and a stellar after tax profit of N2.6 billion.
Transcorp management noted that 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 7% in 2021 to14% in the year 2022.
The company recorded close to 2% increase in finance costs over the previous year despite the cessation of the previously enjoyed COVID-19 concessions on interest rate granted by lenders.
Transcorp in a statement said, the board of the company has approved that the sum of N1.33 billion to 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.
‘’This impressive achievement is the highest revenue generated since the inception of the company,’’ says Dupe Olusola, Managing Director/CEO.
‘’The full-fledged return of international business travel segment and the bolstering business leisure segment contributed immensely to this performance. We continuously strive to achieve a dynamic mix of schemes to efficiently manage hotel occupancy and guest experience,’’ she adds.
The Hotel founded in 1994, is one of Africa’s leading hospitality brand. It is the owner of the prestigious Transcorp Hilton, Abuja and Transcorp Hotels, Calabar.
Transcorp Hotels has a combined 5000+ rooms, both in ownership and management through its online booking platform Aura by Transcorp Hotels.
According to Ms Olusola, the company’s excellent performance in 2022 is the direct result of its concerted efforts and commitment to deliver value to its stakeholders and customers.
‘’In 2023 and beyond, we will build on our strengths, stay agile; optimise our existing businesses, while identifying new opportunities. We remain committed to redefining hospitality in Africa through innovation and exceptional services as we unlock value for all our stakeholders,” Olusola added.
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