Transcorp Hotels Plc, a subsidiary of Transnational Corporation Plc, has announced a major leap in revenue for the first quarter of 2025. The company recorded N21 billion in revenue, marking a 52 per cent increase from the N13.8 billion it posted in the same period of 2024.
The hospitality firm disclosed this in its unaudited financial report submitted to the Nigerian Exchange Limited. The company said the growth was driven by stronger operations and the addition of its new 5,000-capacity event venue, the Transcorp Centre.
In the three-month period ending March 31, 2025, Transcorp Hotels also posted a gross profit of N15.84 billion, which is a 59.6 per cent increase compared to N9.92 billion recorded in Q1 2024. The company achieved a gross profit margin of 75 per cent by reducing its cost of sales margin from 28 per cent to 25 per cent. This strong performance came despite Nigeria’s current macroeconomic challenges, including high inflation and rising costs of operations.
The company’s profit before tax for the quarter was N6.16 billion, slightly higher than the N6.09 billion recorded during the same period last year. However, in 2024, the company had also enjoyed a one-time foreign exchange gain of N2.9 billion. Despite not having that extra boost this year, Transcorp Hotels still maintained profitability, which analysts consider a positive sign of its operational strength.
Speaking on the performance, the Managing Director and Chief Executive Officer of Transcorp Hotels, Uzo Oshogwe, said the numbers show that the company is on the right path. She noted that the growth in revenue and improved profit margins were results of focused strategy and the dedication of the staff.
“Our first quarter 2025 results demonstrate the underlying strength of our business and the effectiveness of our strategic focus on driving revenue growth. The significant increase in revenue and the impressive profit margin growth are clear indicators of the hard work and dedication of our team,” Oshogwe said.
She added that with the new Transcorp Centre and the iconic Transcorp Hilton Abuja under its management, the company is steadily strengthening its leadership in Nigeria’s hospitality industry and across Africa.
The company appears to be positioning itself for long-term success with investments in capacity and customer service, especially by offering more venues for conferences and large events. In a country where the hospitality sector has struggled with inflation, power supply issues, and foreign exchange instability, Transcorp Hotels’ performance may inspire more confidence among investors and industry players.
While the company has achieved significant growth, analysts will be watching to see if it can sustain this momentum in subsequent quarters, especially as consumer spending remains pressured by economic factors.
