Transcorp Hotels made a lot of money from food and drinks this year. Between January and September 2024, they earned N14.9 billion. That’s like having your piggy bank grow 82% bigger than last year when it was only N8.19 billion.
Even though things cost more now and prices are going up across Nigeria, Transcorp Hotels still did very well.
Their money reports say that people wanted more food and drinks. So, this part of their business helped a lot, even though many businesses had a tough time this year.
Besides food and drinks, they also made good money by renting out shops. They got N1.13 trillion from this, which is 34% more than the N841.8 billion they earned from January to September in 2023. This shows a lot of people want to rent spaces in their hotel.
But, there was a sad part. Fewer people stayed at the hotel or used luxury services. From January to September 2024, they only got N4.78 million from room stays, a big drop from N13.8 million last year. This could be because people don’t want to spend much money right now.
Even with all these ups and downs, Transcorp Hotels showed they can still make a lot of money with food and drinks, and by renting out shops.
Things to Remember
A report from Newslodge said Transcorp Hotels’ total earnings were N48.48 billion, a 67.4% increase from last year. Their costs were N14.15 billion, which is 77.7% more, but they still had a big gross profit of N34.33 billion, a rise of 63.4%.
Other income went up by 323.9%, bringing in N4.96 billion. On the downside, their expenses rose by 52.17% to N20.65 billion. Still, their operational profit was impressive, climbing 117.8% to N18.63 billion.
Finance costs slightly fell by 1.01% to N2.92 billion, but finance income jumped by 1,769% to N734.56 million.
Before taxes, they made N16.43 billion, which is 191% more than last year. Although their tax went up by 321% to N6.19 billion, they ended with a profit of N10.23 billion, up 162%.
In the third quarter of 2024 alone, their earnings were N18.76 billion, a big jump from N10.50 billion in the same time in 2023. Profit before tax for this time also grew by 199.4%, soaring from N1.99 billion to N5.96 billion.