Business

Transcorp Hotels records highest half-year profits in 9 years –


Transcorp Hotels Plc has posted N14.99 billion revenue for the half year ended June 30, 2022. The performance was an improvement compared with N8.77 billion revenue achieved during same period in 2021.

The surge in revenue can be attributed to revenue generated from the rooms, and food and beverages revenue component of the hotel, which claimed 64.11 percent and 30.95 percent of total revenues, respectively in the period under review.

Revenue generated from rooms grew by 71.91 percent year-on-year, to N9.61 billion in the first half of 2022 from N5.59 billion in the corresponding period of 2021, while revenue generated from food and beverages grew by 99.14 percent to N4.64 billion in the first half of 2022 from N2.33 billion in the same period last year.

In the first half of 2022, the hotel corporation declared a profit of N1.69 billion, compared to a loss of N-110.7 million in the same time of 2021 while the hotel was getting back on its feet after COVID-19.

Transcorp Hotel’s cost of sales also grew by 75.32 percent to N4.05 billion in the first half of 2022 from N2.31 billion in the corresponding period of 2021, with food and beverages contributing the bulk by 64.20 percent and rooms claiming 33.09 percent of the total cost of sales in the period under review.

Read also: Innovation drives Transcorp Hotels’ revenue growth by 114%

Its operating expenses also grew by 36.47 percent to N6.81 billion in the first half of 2022 from N4.99 billion in the first half of 2021.

Finance costs, however, declined by 4.21 percent to N2.05 billion in the first half of 2022 from N2.14 billion in the corresponding period of 2021.

The hotel company reported total assets amounting to N114.01 billion in the first half of 2022, down 4.10 percent from N118.88 billion in the first half of 2021.

Its total shareholders’ equity, however, increased by 3.62 percent to N63.20 billion in the first half of 2022 from N60.99 billion reported in the corresponding period of last year.

The rate of return received by holders of the company’s common stock on their investment during the time period, as determined by Businessday’s return on equity (ROE) analysis, was 2.74 percent.

Transcorp’s cash and cash equivalents which show the value of the company’s assets that are cash or can be converted into cash immediately declined by 56.47 percent to N3.33 billion in the first half of 2022, from N7.65 billion in the first half of 2021.

Its cash generated from operating activities amounted to N4.73 billion up by a whopping N548.83 billion in the first half of 2022 from N729 million in the first half of 2021.

A breakdown of the cash flow financial statement shows the company invested in property, plant, and equipment amounting to N1.20 billion during the period, which accounted for the bulk of cash outflow reported by the company used in investing activities.

During the period under review, the hotel company recorded negative cash from financing activities which amounted to N-3.33 billion, largely due to repayments of borrowings which amounted to N601.49 million, the interest it paid which amounted to N2.01 billion, and dividends paid which amounted to N716.98 million.



Source link

Related posts

Ifeanyi Ubah escapes shooting attempt

James Faulkner

Dangote Sugar restates commitment to backward integration policy –

James Faulkner

Kwara demands MDAs collaboration to boost revenue, curb financial leakages

James Faulkner