*Olusola: Transcorp Hotels to focus on hospitality expansionThis was just as the Managing Director/CEO, Transcorp Hotel Plc, Dupe Olusola, another subsidiary of the Transcorp Group, yesterday, said the company’s 2024 and beyond projections was to expand its frontier not only in Abuja, Lagos, but across the country and transit into major cities in Africa.
Speaking at the virtual 2023 investors call conference, Olusola, revealed that the company within its Transcorp Hilton in Abuja would convert the existing warehouse to a 3,000- 5,000 capacity event/lifestyle centre.However, Transcorp Power declared N20.1 billion profit after tax in Q1 2024, representing an increase of 665 per cent from N2.6 billion reported in Q1 2023.
In March 2024, the Nigerian Exchange Limited (NGX) admitted 7.5 billion shares of Transcorp Power at N240 per share to its Main Board.
One of the electricity generating subsidiaries of Nigeria’s leading, listed conglomerate, Transnational Corporation Plc (Transcorp Group), recorded N67.86 billion in gross earnings, compared to N21.04 billion reported in Q1 2023, reflecting a significant increase of 223 per cent.
The strong performance is further demonstration of the company’s strategic focus and effective execution, as part of Transcorp Group’s implementation of its integrated power strategy.In addition, Transcorp Power total assets increased to N276.2 billion as of March 31, 2024, up from N223.3 billion in Q4 2023.
Commenting on the financial highlights, the Chief Financial Officer, Evans Okpogoro, said, “The Q1 2024 results saw a gross margin of 51 per cent, a cost to income ratio of 70 per cent and net profit margin of 30 per cent compared to Q1 2023 gross margin of 37 per cent, cost to income ratio of 87 per cent and net profit margin of 13 per cent.“This highlights the remarkable operational efficiency gains of the Company. Transcorp Power has continued to grow its revenue aggressively and consistently over the last five years. We expect that by year end 2024, we will see a similar growth trajectory recorded between FY 2022 and FY 2023.”
Transcorp Power MD/CEO, Peter Ikenga, commented on the results, “We are pleased to report further robust financial performance, despite sectoral challenges such as gas supply issues and macroeconomic challenges. Our ability to sustain growth amidst this environment shows the resilience of our business model and the efficient execution of our strategic initiatives.“We remain committed to leveraging our strengths to capitalise on emerging opportunities, drive sustainable growth and provide superior value to all our stakeholders. We will continue to prioritise ingenuity, operational excellence, corporate governance, and stakeholder engagement, to deliver superior value for our long-term growth,” he added.Meanwhile, speaking at the virtual 2023 investors call conference, Olusola, revealed that the company within its Transcorp Hilton in Abuja, would convert the existing warehouse to a 3,000- 5,000 capacity event/lifestyle centre.
She disclosed that the event centre is expected to be launched in the third quarter of (Q3) 2024.
“We are very confident that this event centre will attract other businesses that go outside of Nigeria to us in our premises at Transcorp Hilton in Abuja,” Olusola said.She hinted that the company focused on delivering by 2027 a 315-key 5-star Hotel with features of relaxation and lifestyle centre, located in the heart of Ikoyi, Lagos, stressing that the “management is excited about this project.”Transcorp Hotel, the hospitality subsidiary of Transnational Corporation Plc, in 2023 reported N9.48 billion profit before tax, a growth of 105 per cent from N4.63 billion reported in 2022, while profit after tax closed the year under review at N6.09 billion, an increase of 133 per cent from N2.62 billion reported in 2022.
On the divestment of its 100per cent interest in Transcorp Hotels Calabar Limited to Eco Travels and Tours Limited, Olusola said the exit was a strategic, leaving room for the management of Transcorp Hotels to focus on its expansion plans.To sustain its performance, she said, “we will focus on key growth drivers that will ensure we continuously win in this ever-changing industry and economy.
Part of what she highlighted include, “The enhanced use of our digital platform Aura, which is revolutionizing how we drive bookings, engage with guests, and generate revenue. This technology underscores our commitment to growth and adaptability in the digital age.
“Upgrading our technology to enrich the guest experience, offering contactless services and personalised offerings that cater to the unique preferences of each visitor, ensuring that our services are not just cutting- edge but also deeply personal.
“Strategic sourcing and operational efficiency which are key to our cost optimization efforts. We are dedicated to managing expenses without compromising the quality that our guests have come to expect from us.
“Focus on eco-friendly initiatives, energy-saving measures, and sustainable sourcing, and continuously looking for ways to enhance the value and utility of our assets – including thoughtful refurbishments and adaptive reuse of spaces, ensuring that our investments yield the best possible returns.”
She added that the management of Transcorp Hotel is confident that it would maintain its performance through 2024 and beyond.
“We are committed to not only upholding but elevating the exceptional guest experiences that set us apart,” she said.
During her presentation, the Chief Finance Officer, Transcorp Hotels, Oluwatobiloba, Ojediran said, the company in the 2023 financial year positioned itself to take advantage of the resurgence of the economy, increased business activities, and the political season.
“This drove revenue across our major business lines of rooms, food beverage and Conferences and events,” she said.
Transcorp Hotel in 2023 financial year declared N41.46 billion revenue in 2023, representing an increase of 36.2 per cent from N30.44 billion reported in 2022.
“Our finance cost has reduced by eight as compared to 2022 as a result of promptly meeting our loan obligations. In addition we have implemented a robust energy management strategy that has led to significant savings in the cost of power and other utilities,” she explained.
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