Transcorp Hotels Plc has released its first quarter unaudited result for 2022, posting a 77.4 per cent increase in revenue, as it moved from a position of loss to profitability.
The hospitality company, which is a subsidiary of Transnational Corporation Plc, saw its revenue rise form N3.97 billion in the first quarter of 2021 to N7.04 billion in Q1 2022.
The hospitality company, which owns the iconic Transcorp Hilton Abuja, Transcorp Hotels, Calabar and online booking platform aura by Transcorp Hotels, said, it recorded more than 600 per cent growth in profit before tax (PBT) to N1.067 billion from a loss of N203.7 million in the same period last year.
Commenting on the results, managing director/CEO of Transcorp Hotels Plc, Mrs Dupe Olusola, expressed confidence in the company’s ability to sustain its growth trajectory.
“Our first quarter performance was driven by our relentless innovation in all facets of our business, creating new and tailored business and leisure offerings, while consistently improving guest experience to ensure maximum value for every spend.
“This has seen us record continuous growth from January through March. Our leisure business remains strong on the back of strategies employed following the pandemic, even as our International Business Travellers continue to show impressive recovery. Q1 ended with a RevPAR growth of 74.4 per cent when compared with Q1 2021, and an ADR growth of 19.1 per cent, even as we continue to outperform industry average.
“Looking ahead, we expect to continue to see improvements through the second quarter, as we remain committed to delivering exceptional services and increase access to luxurious hospitality, in keeping with our mission of redefining hospitality in Africa. Also, as COVID-19 restrictions continue to reduce, we expect business travel to accelerate which would further supplement the buoyant leisure business,” she stated.
In her comments, the chief finance officer, Mrs. Oluwatobiloba Ojediran, highlighted the outstanding performance of the company, stressing that, the group was able to strategically contain costs of operation to achieve the optimal results.
“A notable level of operational efficiency was witnessed during the quarter, as the operating expense margin reduced from 58 per cent in Q1 2021 to 45 per cent Q1 2022, despite the impressive 77 per cent year-on-year growth in Revenue. Also, the Gross profit margin was sustained at 73 per cent.
“This is amidst Nigeria’s inflation rate which climbed to 15.92 per cent in March 2022, from 15.6 per cent in December 2021, the fastest rise in consumer prices since last October 2021. Also, prices of diesel, which is used to power most businesses, more than doubled within the same period.” Ojediran said.