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Brands & People

Transcorp Hotels grows profit by 172%

Transcorp Hotels Plc, the hospitality subsidiary of Transcorp Group  has said its profit after tax rose by 172 per cent in 2022 financial period.

In a statement on its financial results for full year 2022, it said, “The company reported a profit before tax of N4.5bn, a 172 per cent increase year-on-year, having ended 2021 with a PBT of N1.7bn.

“It also reported a 47 per cent growth in revenue to N31.4bn in 2022 from N21.4bn the previous year, and a N2.6bn profit after tax.”

According to the statement, this was 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.

The company said it recorded about two 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.

Commenting on the results, the Managing Director/Chief Executive Officer, Transcorp Hotels, Dupe Olusola, said, “This impressive achievement is the highest revenue generated since the inception of the company.

“The full-fledged return of the international business travel segment and the bolstering 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.

“Our excellent financial performance in 2022 is the direct result of our concerted efforts and commitment to deliver value to our 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.”

According to the statement, the board of the company had approved N1.33bn to be paid to shareholders as dividends for the year ended December 31, 2022, which was subject to the shareholders declaration at its annual general meeting.

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