Buoyed by the robust top and bottom-line growth recorded by Transcorp Hotels Plc for the year ended December 31, 2021, the directors are confident that the group is poised to drive the Nigerian hospitality industry, going forward, in the aftermath of the COVID- 19 pandemic, whose outbreak has dominated the global economic landscape since early 2020.
According to the audited results for the period presented through the Nigerian Exchange Limited platform, the company grew revenue by 114%, from N10.158bn in 2020, to what it described in a statement as “a strong recovery,” and “record-breaking” performance, revenue soared to N21.742bn, of which cost of sales took N5.512bn, up from N3.489bn, bringing gross profit to N16.229bn, a jump from N6.668bn, representing an equally robust 143%.
Other operating income soared from N170.971m to N909.383m; impairment gains on financial assets dropped from N53.199m to N20.224m; termination/retirement benefits was nil last year, compared to the previous N2.238bn; administrative expenses climbed from N8.288bn to N11.428bn. These brought operating profit to N5.73bn, compared to the N3.634bn loss; finance costs dropped from N5.306bn to N4.072bn; while finance income remained lean at N4.299m, down from N6.213m.
For shareholders, the most important detail about the result is the company’s emergence from a loss before tax of N8.934bn to a profit of N1.662bn. Tax for the period under review stood at N545.295m, compared to a rebate of N2.664bn in the preceding year; which reduced the effects of the loss for the 2020 financial year to N6.289bn; while profit after tax for the 2021 year stood at N1.117bn. The profit translated to earnings per share of 11 kobo, from which the board has recommended a dividend of seven kobo each, amounting to a total payout of N717m; compared to the previous loss of 77 kobo each.
The performance, the company noted, also reflects its “resilience and nimbleness, as it consistently leverages innovation to achieve an outstanding performance, breaking occupancy, and revenue records in 2021, quoting Mrs. Dupe Olusola, its Managing Director and Chief Executive as expressing pleasure at the improvements recorded by most segments of the business.
She also expressed belief “that Transcorp Hotels Plc is well-positioned to continue to capitalise on the recovery in the hospitality industry as we work towards achieving our vision of becoming Africa’s leading hospitality brand. We are on launching several projects that have been in the pipeline to further our play of being a full-service hospitality brand and diversify our portfolio.
“We are excited about the opportunities to deliver continued growth in 2022, as we remain focused on strengthening our business and investing for the future.”
Also commenting on the result, Emmanuel Nnorom, the chairman, expects the Nigerian hospitality industry to continue to recover in 2022, “as the domestic leisure, business and the leisure segment — corporate travellers which also add leisure activities into their stay – continue to expand, even as international guests return, we expect the hospitality industry to continue its recovery.
“Having steered the business out of the effects of the pandemic, and back to profitability, our management team has shown the resilience and potential of our business, as well as a sign of the bright future that lies ahead. Backed by a Board committed to corporate governance and organisational excellence, our esteemed shareholders can be reassured that we will continue to deliver value and strong returns,” he added.