Ikeja hotel record worst results since 2019 on OPEX, finance cost
On the backdrop of hike in total operating expenses and finance cost, Ikeja Hotel Plc yesterday announced N3.94billion loss in 2022 financial year as against N180.6million loss reported in the corresponding period of 2021.
The reported N3.94billion loss in 2022 is the company’s worst performance since 2019 when it posted N834.9million profit after tax.
The hospitality company listed on the Nigerian Exchange Limited (NGX) saw it loss before tax at N3.36biullion in 2022 from N200.9million profit before tax in 2021.
The combination of total operating expenses and finance cost dragged the company’s 2022 to losses
According to audited result and accounts on the NGX, Ikeja Hotel announced N6.2 billion total operating expenses in 2022 from N1.91 billion reported in 2021, while its finance cost stood at N1.06 billion inn 2022 from N946 million in 2021.
The Board of Directors of Ikeja Hotel proposed a dividend of 7.5 kobo per 50kobo ordinary share amounting to N155,909,730 on the existing issued ordinary shares of 2,078,796,399 units for the year ended December 31, 2022.
However, the company announced N12.9billion revenue from contracts with customers in 2022, representing an increase of 31 per cent from N9.87billion reported in 2021.
The breakdown of revenue from contracts with customers showed N7.47billion room sales in 2022, an increase of 30 per cent from N5.7billion in 2021, while Food and beverage stood at N4.47billion in 2022 from N3.44billion reported in 2021.
In addition, Other minor operating departments closed 2022 at N963.13million, an increase of 41.4 per cent from N680.94million reported in 2021.
The Managing Director of the company, Theophilus Netufo, recently expressed optimism that the firm would sustain its prime position as the flagship of hospitality and tourism business in Nigeria.
According to him, “Since the new board came, and I was asked to supervise the company as Group Managing Director, with collaboration and support of the board, we had no choice but turn the company around.
“What we do, as strategy, is to set up the goal we want to achieve, how we will achieve it, and also removed hurdles and bottlenecks on the way. And ever since, things have been moving, in spite of economic challenges.”
