Transcorp Hotels Plc has reported a strong performance for the nine months ended September 30, 2025, with growth across all profit metrics, driven by increased occupancy rates, food and beverage sales, and strong event bookings.
According to the company’s unaudited financial statements, revenue rose 49% to ₦72.31 billion from ₦48.49 billion in the same period of 2024. Rooms contributed the largest share at ₦48.05 billion, followed by food and beverage sales of ₦21.02 billion. Event hall and shop rental income also added over ₦2.5 billion combined.
After accounting for cost of sales of ₦17.26 billion, gross profit climbed 60% to ₦55.06 billion, reflecting improved operational efficiency and pricing strategy despite inflationary pressures.
However, operating expenses rose 49% to ₦30.87 billion, thus the company achieved an operating profit of ₦24.69 billion, up from ₦18.63 billion a year earlier.
Finance costs declined slightly to ₦2.80 billion, while finance income stood at ₦520.7 million. This lifted profit before tax to ₦22.40 billion, 36% higher than the ₦16.44 billion recorded in 2024.
After tax expenses of ₦7.58 billion, profit after tax rose 45% to ₦14.82 billion.
Earnings per share improved to 145 kobo, up from 100 kobo in 2024, indicating stronger returns for shareholders.
Balance Sheet
Total assets grew to ₦154.25 billion, compared with ₦140.70 billion at the end of 2024 — a 9.6% increase.
Key asset components include:
- Property, plant and equipment: ₦122.82 billion
- Investments: ₦3.77 billion
- Cash and bank balances: ₦12.33 billion
- Trade receivables: ₦11.19 billion
On the other hand, total liabilities stood at ₦66.03 billion, up from ₦60.18 billion in December 2024.
The largest liability items were:
- Trade and other payables: ₦28.94 billion
- Borrowings: ₦10.62 billion
- Deferred tax liability: ₦16.66 billion
Shareholders’ equity increased to ₦88.23 billion, supported by retained earnings of ₦70.49 billion and fair value gains of ₦461.4 million on investments.
Cash Flow
Transcorp Hotels recorded ₦21.79 billion in cash generated from operations, up from ₦14.28 billion in the same period last year.
After investing ₦7.42 billion in new assets and paying taxes of ₦2.97 billion, the company ended the period with ₦12.21 billion in cash and cash equivalents, reflecting a strong liquidity position.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
