Transcorp Hotels Plc has reported a 4.8% increase in profit after tax to N15.54 billion for the nine months ended September 30, 2026, as the hospitality company’s total assets expanded by 29.3% to N206.82 billion.
According to its unaudited financial statements, profit after tax rose from N14.82 billion in the corresponding period of 2025.
Revenue stood at N69.46 billion, compared with N71.30 billion recorded in the first nine months of 2025, representing a marginal decline of 2.6%.
However, improved cost management, stronger finance income and lower tax expenses supported the company’s overall earnings performance.
Cost of sales declined by 6.4% to N16.15 billion from N17.26 billion, helping Transcorp Hotels maintain a gross profit of N53.32 billion, compared with N54.05 billion in the corresponding period of 2025.
The reduction in direct operating costs improved the company’s gross profit margin to 76.8% from 75.8%, demonstrating greater efficiency in converting revenue into gross earnings.
Operating expenses also declined by 1.8% to N29.32 billion from N29.86 billion, while operating profit remained relatively stable at N24.36 billion, compared with N24.71 billion a year earlier.
The results indicate that the company maintained a substantial operating profit despite the modest reduction in revenue.
A significant contributor to the nine-month earnings performance was the growth in finance income, which increased to N4.46 billion from N520.68 million in the corresponding period of 2025.
The increase helped offset higher finance costs, which rose to N5.91 billion from N2.80 billion.
Consequently, net finance costs declined to approximately N1.45 billion from N2.28 billion, providing support to profit before tax.
Profit before tax increased marginally to N22.53 billion from N22.40 billion, while income tax expense declined to N6.98 billion from N7.58 billion.
The combination lifted profit after tax to N15.54 billion, compared with N14.82 billion in the previous year.
Basic earnings per share increased to 152 kobo from 145 kobo, reflecting the improvement in earnings attributable to shareholders.
The company’s financial position also strengthened in terms of its overall asset base.
Total assets rose to N206.82 billion as of September 30, 2026, from N159.91 billion at the end of December 2025, representing an increase of approximately N46.91 billion.
Property, plant and equipment increased to N127.69 billion from N124.86 billion, reflecting a larger carrying value of the company’s physical operating assets.
Current assets more than doubled to N73.57 billion from N29.49 billion, supported principally by increases in trade and other receivables and cash balances.
Trade and other receivables stood at N50.53 billion, compared with N11.00 billion at the end of 2025, while cash and bank balances increased to N20.34 billion from N16.96 billion.
The higher cash position provides additional financial resources for the company’s operations, although the substantial increase in receivables will make collections and working capital management important considerations.
Shareholders’ equity increased to N97.55 billion from N95.23 billion, supported by retained earnings.
Retained earnings stood at N79.76 billion at the end of September, compared with N77.53 billion in December 2025.
The company also reported total comprehensive income of N15.64 billion for the nine-month period, compared with N15.29 billion in the corresponding period of 2025.
The increase included a fair value gain of N92.15 million on an equity instrument.
In the third quarter ended September 30, Transcorp Hotels recorded revenue growth of 2.7% to N25.04 billion from N24.37 billion in the corresponding quarter of 2025.
Gross profit for the quarter increased by 4.6% to N19.34 billion from N18.48 billion, supported by a reduction in cost of sales.
However, higher operating and financing expenses affected quarterly earnings, with profit after tax standing at N5.00 billion, compared with N6.14 billion in the third quarter of 2025.
The quarterly performance highlights the importance of sustained cost discipline as the company seeks to translate revenue growth into stronger profitability.
The financial statements also showed an increase in the company’s funding obligations, with total borrowings rising to N54.96 billion from N10.52 billion at the end of December 2025.
Non-current borrowings accounted for N35.38 billion, while current borrowings stood at N19.58 billion.
The increase in borrowings contributed to the expansion of the company’s total liabilities to N109.27 billion from N64.68 billion.
Although the higher borrowings increased finance costs during the period, the company’s stronger finance income helped moderate their impact on nine-month profitability.
For investors, the results demonstrate Transcorp Hotels’ ability to maintain earnings growth through cost efficiency and financial income, even as its operating environment continues to evolve.
The increase in total assets, higher cash balances and growth in retained earnings also provide important indicators of the company’s financial position.
Looking ahead, revenue performance, operating efficiency, working capital management and financing costs will remain important factors in determining the company’s earnings trajectory.
With nine-month profit reaching N15.54 billion and total assets exceeding N206 billion, Transcorp Hotels enters the final quarter of 2026 with a larger asset base and improved year-to-date profitability.
