Transcorp Hotels Delivers Impressive Third Quarter 2021 Turnaround, With 662% Profit Growth

Transcorp Hotels Plc. (the “Company” or the “Group”), (Bloomberg: TRANSCOH: NL; Reuters: TRANSCOHOT.LG), owner of Transcorp Hilton Abuja, Transcorp Hotels Calabar and Aura by Transcorp Hotels, announced its unaudited Q3 results showing 115 % year-over-year (YoY) revenue growth to N14.6 billion and gross profit growth of 149% to N10.8 billion, leading to pre-tax profit of N745 million a 662% improvement in performance recorded during the same period in 2020.

HIGHLIGHTS OF THE RESULT:

Statement of Profits or Losses:

Year-over-year analysis (YTD Sep 2021 to YTD Sep 2020) reveals the following:

  • Turnover: 14.6 billion naira in September 2021, compared to 6.8 billion naira in September 2020 (growth of 115% year-on-year).
  • Gross profit: 10.8 billion naira in September 2021, compared to 4.3 billion naira in September 2020 (growth of 149% year-on-year).
  • Operating expenses: 7.9 billion naira in September 2021, compared to 6.0 billion dwarfs in September 2020 (growth of 31% year-on-year).
  • Interest cost: 3.1 billion naira in September 2021, compared to 4.5 billion naira in September 2020 (31% year-on-year decline).
  • Profit / (loss) before tax: N 745 million in the current fiscal year in September 2021, compared to N (5.6) billion in September in 2020 (662% improvement year-on-year ‘other).

Statement of Financial Position

  • Total assets increased by 2.18% from 115.3 billion naira in December 2020 to 112.9 billion naira in the third quarter of 2021 due to the increase in trade receivables and cash and cash equivalents cash flow precipitated by improved business operations during the period.
  • Total liabilities increased by 3.31% from 53.5 billion naira in December 2020 to 51.8 billion naira in the third quarter of 2021. This is due to the increase in trade debts due to the improvement of business activities during the period.
  • Shareholder Fund: 61.84 billion naira, an increase of 1.21% year-to-date from the FY2020 value of 61.10 billion naira.

Commenting on the results, Dupe Olusola, the CEO said:

“Our performance reflects our company’s strength in resisting external shocks and continuing to grow revenues even under difficult economic conditions.

“Demand continued to improve to impressive levels during the year, accelerating in the third quarter to pre-pandemic levels. We ended September with an occupancy rate of 63 for percent, up from 28 percent over the same period last year, as we continue to outperform the industry average on several indexes.

“We are seeing a significant improvement in our corporate and group bookings, as vaccination rates increase and businesses begin to return to full capacity. agility and strength of will to redefine hospitality in Africa.

“Our flagship Transcorp Hilton hotel has been named Africa’s best business hotel by the World Travel Awards for seven consecutive years. This is a testament to our constant focus on redefining hospitality and providing excellent service to our guests, ensuring that every experience with us is a memorable one.

“We remain focused on executing our growth strategy, leveraging the technology and expertise of our people to deliver the best customer experience across all of our assets, properties and touchpoints.

“Recently, we launched Aura by Transcorp Hotels, a digital platform for booking accommodation, catering and experiences. Aura addresses the three main things people need when traveling; where to stay, what to eat and what to do to make their trip memorable. This activity, which stems from our light asset strategy, offers us an excellent opportunity for expansion in line with our long term plans to expand across Africa.

“As the global economy continues to recover from the impact of the COVID-19 pandemic, Transcorp Hotels Plc. will remain a leader in the industry, providing tailor-made hospitality services to discerning clients, who live for memorable experiences and excellent service delivery.

About Transcorp Hotels Plc.

Transcorp Hotels Plc. is one of Africa’s leading hotel companies, committed to redefining service standards across the continent while remaining truly and authentically African. The Company’s hotels include Transcorp Hilton Abuja and Transcorp Hotels Calabar.

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About Raul T. Casey

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