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Ikeja Hotel profit jumps 230% despite headwinds

Ikeja Hotel profit jumps 230% despite headwinds

Ikeja Hotel has reported a 230 percent in profit after tax to N397.54 million in the first half of 2023 from N120.48 million in the same period of 2022.

On a quarterly basis, profit after tax stood at N362.11 million from N9.65 million.

The hotel recorded 157 percent growth in profit before tax to N540.91 million in the first half of 2023 from N210.67 million in the first half of 2022.

Ikeja Hotel’s revenue, however, dipped to N4.57 billion in the first half of 2023, a 34 percent decrease from N6.89 billion in the same period of 2022.

Revenue from rooms contributed the most of N1.61 billion, food and beverage (N854.67 million), miscellaneous income (N26.23 million), and minor operating departments (N15.97 million) in the first half of 2023.

The hotel’s cost of sales dipped to N3.06 billion in the first half of 2023 from N5.06 billion in the first half of 2022.

Ikeja Hotel’s operating profit grew 16 percent to N863.2 million in the first half of 2023 from N744.87 million in the first half of 2022.

Last May, Honeywell Group, an investment holding company announced the appointment of its chief financial officer, Kemi Adeoye, to the board of Ikeja Hotel Plc as a non-executive director.

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Commenting on the appointment, Adeoye said: “I thank the Board of Ikeja Hotel Plc for this appointment. I’m looking forward to joining the Board in steering the long-term strategy focused on providing first-class international hotel development and management services in the hospitality and tourism industry, while contributing effectively to the socio-economic development of Nigeria.”

Ikeja Hotel recorded other income which amounted to N68.7 million in the first half of 2023 from N28.85 million in the first half of 2022.

The hotel’s sales and distribution expenses dipped to N166.69 million in the first half of 2023 from N259.53 million in the same period of the prior year.

Administrative and general expenses dropped to N608.09 million from N872.171 million in the comparable period.

Ikeja Hotel’s net cash from operating activities dipped to N1.91 billion in the first half of 2023 from N3.09 billion in the first half of 2022.

Net cash flows used in investing activities stood at N61.28 million from N513.71 million negative cash flow year on year.

Net cash flows used in financing activities stood at a positive of N1.3 billion in the first half of 2023 from a negative of N531.09 million in the first half of 2022.

Cash and cash equivalent at the end of the period rose to N11.89 billion in the first half of 2023 from N6.89 billion in the same period of 2022.

The hotel cash in hand stands at N4.83 million in June 2023 from N2.44 million in December 2022.

Cash at banks stood at N6.51 billion in June 2023 from N5.35 billion in December 2022.

Basic earnings per share rose to 19 kobo in the first half of 2023 from 6 kobo in the first half of 2022.

Ikeja Hotel Plc was incorporated as Properties Development Limited on November 18, 1972, with a view to providing world-class hotel and catering services to meet the needs of an ever-increasing number of local and international business and leisure travellers entering the city of Lagos. The Company’s name was later changed to Ikeja Hotel Limited in October 1980.