…Stock value grows by 1022.9%
From Adanna Nnamani, Abuja
Despite persistent inflationary pressures, heightened economic insecurity and the substantial costs associated with operations in Nigeria, Transcorp Hotels Pic. demonstrated remarkable resilience and concluded the financial year of 2023 strongly.
This was evident in the company’s Annual Financial Report made available at its 10th Annual General Meeting held in Abuja on Monday.
The Group recorded an impressive gross revenue of N41.5 billion, showcasing a substantial growth trajectory that outpaced the previous year’s revenue of N31.4 billion (representing 32.16 % increase).
The Company’s stock price increased by 1022.9% from N6.25 on January 1, 2023, to close at N70.18 on December 31, 2023.
The gross profit for Transcorp Hotels Plc. in the financial year 2023 reached N29.8 billion, signifying a notable 37% upturn from the N21.7 billion generated in the previous fiscal year.
The Group attained a remarkable profit before tax performance of N9.5 billion in 2023, 105 percent higher than the N4.6 billion in 2022.
A net profit margin of 15% was attained by the company in 2023, showcasing an improvement of 6 basis points from the corresponding figure in 2022.
Consequently, Transcorp declared dividends of 2.05 billion Naira or 20 kobo per ordinary share as final dividend at the close of 2023 business year.
The Managing Director and CEO, Dupe Olusola said the hotel achieved a remarkable occupancy rate of 81 percent alongside notable growth in both Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR).
Olusola noted that the company’s success was driven by its deliberate enhancements and investments across its portfolio, including the modernization of essential facilities and launch of new features designed to elevate the overall guest experience.
She added that, “our performance was bolstered by the robust resurgence of the economy, heightened business activities during the electoral season in February 2023 and an increased influx in the International Business Travel and Leisure Segments.”
“The implementation of proactive cost efficiency strategies and an unwavering focus on revenue generation played pivotal roles in delivering positive outcomes. This not only underscores our resilience in navigating economic challenges but also emphasizes our dedication to enhancing overall profitability.”
Speaking on the company’s strategic goals for 2024, the MD said that its primary focus revolves around strategically expanding the business and positioning it for not only immediate success but sustained and robust long term goal.
She disclosed plans by the company to unveil a state-of-the-art event center in Abuja as well as the development of its property in Ikoyi, Lagos State.
“This expansion initiative reflects our forward-thinking approach and proactive stance in meeting the evolving needs of the market “, she stated.