Transcorp Hotels Plc, a prominent player in the African hospitality sector, has announced robust financial results for the first quarter of 2025, showcasing significant growth and sustained profitability. The company’s unaudited financial statements reveal a remarkable 52% year-on-year surge in revenue, reaching N21 billion compared to N13.8 billion in the same period of 2024. This impressive growth is attributed to enhanced operational performance and the strategic addition of the Transcorp Centre, a state-of-the-art event space with a capacity of 5,000, further solidifying the company’s leadership position in the industry. This expansion has broadened the company’s offerings and catered to a wider range of clientele, contributing significantly to the revenue increase.
The positive momentum extended to profitability metrics, with gross profit soaring by 59.6% to N15.84 billion, compared to N9.92 billion in the first quarter of 2024. This surge in gross profit underscores the company’s effective cost management strategies, as evidenced by a reduction in the cost of sales margin from 28% to 25%. Achieving this level of efficiency despite a challenging macroeconomic environment marked by inflation and escalating operating costs is a testament to the company’s operational resilience and strategic financial planning. The improved gross profit margin of 75% further highlights the company’s ability to optimize its operations and enhance profitability.
Despite the absence of a N2.9 billion foreign exchange gain recorded in the previous year, Transcorp Hotels maintained a steady profit before tax of N6.16 billion, marginally exceeding the N6.09 billion reported in the corresponding period of 2024. This sustained profitability, even without the one-off foreign exchange gain, demonstrates the underlying strength of the company’s core business operations and its ability to generate consistent earnings. It signifies the company’s ability to navigate volatile market conditions and maintain a healthy financial performance.
The successful integration of the Transcorp Centre alongside the flagship Transcorp Hilton Abuja has strategically positioned Transcorp Hotels for continued growth and market dominance. The Transcorp Centre, with its impressive capacity, has significantly expanded the company’s ability to host large-scale events, conferences, and conventions, attracting a diverse range of clients and generating substantial revenue streams. This strategic investment has not only boosted the company’s financial performance but also solidified its reputation as a premier destination for events in the region.
Uzo Oshogwe, the Managing Director/Chief Executive Officer of Transcorp Hotels, emphasized the company’s strategic focus on revenue growth and operational excellence as key drivers of the strong first-quarter performance. Oshogwe highlighted the dedication and hard work of the team in achieving these positive results. She further noted that the addition of the Transcorp Centre, coupled with the iconic Transcorp Hilton Abuja, reinforces Transcorp Hotels’ position as a leader in the African hospitality industry. This combination of established prestige and innovative expansion positions the company for continued success in a competitive market.
The impressive first-quarter results build on the company’s strong performance in 2024, where Transcorp Hotels recorded a remarkable 138% surge in profit after tax, reaching N14.9 billion compared to N6.3 billion in 2023. This substantial growth was driven by a combination of revenue expansion and improved operational efficiency, implemented throughout the year. These successful strategies demonstrate the company’s commitment to sustainable growth and its ability to capitalize on market opportunities while effectively managing costs. This consistent track record of strong financial performance positions Transcorp Hotels for continued success and reinforces its standing as a leading player in the hospitality sector.
