Transcorp Hotels Plc rode on the back of improved market share to grow its top-line to ₦21 billion in the first three months of this year, raising optimism that the hospitality group could set a record performance this year.
Key extracts of the interim report and accounts of Transcorp Hotels Plc for the three-month period ended March 31, 2025 released at the Nigerian Exchange (NGX) showed that total revenue rose to ₦21 billion in first quarter 2025 as against ₦13.8 billion in comparable period of 2024, representing an increase of 52 per cent.
The report indicated appreciable improvement in operating efficiency with cost of sales margin improving from 28 per cent in first quarter 2024 to 25 per cent in first quarter 2025, implying a gross profit margin of 75 per cent for first quarter 2025.
With higher margin, gross profit grew by 59.6 per cent from N9.92 billion to N15.84 billion. Profit before tax also increased to N6.16 billion compared with N6.09 billion recorded in comparable period of the previous year. The 2025 performance represented a major improvement when taken into consideration exceptional N2.9 billion foreign exchange (forex) gain that boosted pre-tax profit in first quarter 2024.
Managing Director, Transcorp Hotels Plc, Uzo Oshogwe said the strong growth in revenue underlined the group’s enhanced operational performance.
She noted that with the recent completion of its new event centre, the company is well-positioned to unlock additional revenue streams and drive further profit growth—reinforcing Transcorp Hotels’ leadership in Nigeria’s hospitality sector and creating long-term value for shareholders.
Oshogwe pointed out that Transcorp Hotels achieved a notable improvement in gross profit margin, despite a challenging macroeconomic environment marked by rising inflation and increased operating costs.
She added that the solid performance highlighted the underlying strength of the group’s operations and its ability to deliver value, even in a less favourable macroeconomic environment.
“Our first quarter 2025 results demonstrate the underlying strength of our business and the effectiveness of our strategic focus on driving revenue growth. The significant increase in revenue and the impressive profit margin growth are clear indicators of the hard work and dedication of our team.
“We recently added Transcorp Centre, a 5,000-capacity event space, to our expanding assets, including the iconic Transcorp Hilton Abuja, as we continue to solidify our position as a leader in the African hospitality landscape,” Oshogwe said.
Credit: thenationonlineng.net
