New data has shown the loss reported by Ikeja Hotels in the nine-month (9M) period that ended September 2022 dipped further by 27 percent to N247 million from N195 million in the corresponding period of 2021.
According to the company’s financial data extracted from the Nigerian Exchange Group (NGX), the dip was on the heels of a 6.37 percent decline in total revenue reported by the company. The hotel’s revenue declined to N6.17 billion in the nine-month period of 2022 from N6.59 billion in the nine-month period of 2021.
Further analysis of the revenue-generating segments shows that revenue was down across the board. The rooms revenue generating segment was down marginally to N3.82 billion in 9M’2022 from N3.82 billion in 9M’2021, while the food and beverage revenue generating segment was down 9.3 percent to N1.94 billion in 9M’2022 from N2.14 billion in 9M’2021.
The minor operating departments’ revenue generating segment was however the main driver of the revenue dip as it was down 88 percent to N38.01 million in 9M’2022 from N325.4 million in 9M’2021.
Despite inflationary pressures, Ikeja Hotels managed to report a 10 percent decline in the cost of sales to N3.97 billion in the nine-month period of 2022 from N4.97 billion in the nine-month period of 2021.
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The hotel’s administrative expenses, however, increased by 30 percent to N1.28 billion in 9M’2022 from N983 million in 9M’2021.
On account of the high-interest rate environment which impacted the interest expense payable on loans, finance costs reported by the hotel jumped 11.76 percent to N808 million in the nine-month period of 2022 from N723 million in the corresponding period of 2021.
Total assets were down 28.71 percent during the period to N30.19 billion from N42.35 billion in 9M’2021. In the same vein, shareholder’s equity was also down 57.13 percent in the period under review to N8.84 billion from N20.62 billion in 9M’2021.
Its cash and cash equivalents increased by 72.16 percent to N7.73 billion in 9M’2022 from N4.49 billion in 9M’2021, indicating that the hotel is liquid enough to cover its short-term obligations despite reporting a loss in the period.
Net cash flow from operating activities was positive during the period, indicating that it is generating adequate cash from its core operations, however, the cash flow declined during the period by 28.81 percent to N961 million from N1.35 billion in 9M’2021.
Net cash flow from investing activities was negative during the nine-month period of 2022 to N283 million from N315 million in the nine-month period of 2021.
Net cash flow from financing activities grew by 389 percent to N2.21 billion in the nine-month period of 2022 from N-764 million in the nine-month period of 2021.
Ikeja Hotels reported negative earnings per share of N-12 per share in the nine-month period that ended in September 2022.
