Transcorp Hotels Plc continues outstanding growth in earnings with an after-tax profit of N14.8 billion at the end of the third quarter, virtually at par with the company’s full-year profit of under N14.9 billion in 2024.
Strong revenue growth is a key advantage of the hospitality company, with a turnover of N72.3 billion at the end of the third quarter, already exceeding the full year’s figure of N70 billion for the previous year.
The company has maintained a high-growth revenue and profit track for five years since it returned to profit in 2021.
The interim financial report of Transcorp Hotels for the nine months ended September 2025 shows strength in turnover with moderating input costs that compensated for a major drop in other operating income.
Other operating income dropped from nearly N5 billion in the same period last year to N520 million at the end of the third quarter, reflecting a drop in net foreign exchange gains from N4.4 billion to a net loss of N20.7 million over the period.
The impact of the drop in the income line was more than remedied by strongly going sales and slowing the cost of sales.
Revenue rose by one-half year-on-year to N72.3 billion for the nine months of operations,while input cost grew by 21.8 percent to slightly above N17 billion.
Apr 3, 2025
Transcorp Hotels Grows Profit to N15bn.
Cost saving from cost of sales powered gross profit to an increase of 60.4 percent year-on-year to N55 billion at the end of the third quarter.
The strong growth absorbed the drop in other operating income and still enabled an increase of 32.5 percent in operating profit to N24.7 billion at the end of the period.
Further cost saving was extracted from finance expenses that declined slightly to N2.8 billion at the end of the third quarter.
This reflects a reduction in interest bearing debts in the balance sheet from over N16 billion at the end of 2024 to N10.6 billion at the end of September 2025.
The company closed the third quarter operations with a pre-tax profit of N22.4 billion and an after-tax profit of N14.8 billion, representing year-on-year increases of 36.3 percent and 44.7 percent respectively.
The company had grown revenue by 69 percent to N70 billion for the 2024 full year while profit for the year advanced by over 165 percent to roughly N14.9 billion. The figure is well over the three preceding years’ combined profits of about N10 billion.
