Last Update 25 Oct 25
Wane_Investment_House made no meaningful changes to valuation assumptions.
Summary
Ikeja Hotel Plc delivered a strong financial performance in the nine months ended September 2025, reflecting significant growth in revenue and profitability. Improved operating efficiency and robust finance income helped boost bottom-line earnings, positioning the Group for a solid FY2025 close.
Income Statement Highlights (₦’000)
Metric 9M 2025 9M 2024 YoY % Change
Revenue 18,516,302 12,598,705 47%
Cost of Sales (9,500,059) (7,964,112) +19%
Gross Profit 9,016,243 4,634,593 +95%
Operating Profit 6,897,893 3,203,098 +115%
Finance Income 1,550,759 878,831 +76%
Finance Cost (1,113,350) (994,978) +12%
Profit Before Tax (PBT) 7,335,302 3,086,951 +138%
Profit After Tax (PAT) 4,851,445 2,002,195 +142%
EPS (kobo) 224 93 +141%
Interpretation:
- Strong top-line growth driven by improved hotel occupancy, room rates, and event revenue.
- Gross margin expansion from 36.8% (2024) to 48.7% (2025) shows better cost control and pricing efficiency.
- PAT more than doubled, indicating strong operational leverage.
Quarterly (Q3 2025 vs Q3 2024)
Metric Q3 2025 (₦’000) Q3 2024 (₦’000) Change (%)
Revenue 6,384,485 4,391,628 +45%
PAT 1,730,366 645,949 +168%
EPS (kobo) 80 30 +167%
The third quarter sustained the strong trajectory, reflecting resilient demand in Nigeria’s hospitality segment despite inflationary pressures.
Balance Sheet Summary (₦’000)
Item 30 Sept 2025 31 Dec 2024 Change
Total Assets 90,544,715 83,670,604 +8.2%
Total Equity 35,187,391 30,555,030 +15.1%
Total Liabilities 55,357,325 53,115,574 +4.2%
Key Balance Sheet Insights:
- Equity growth reflects profit retention (Retained Earnings rose to ₦18.78bn from ₦14.25bn).
- Cash & cash equivalents rose significantly to ₦29.56bn from ₦22.74bn (+30%), indicating healthy liquidity.
- Deferred income remains high (₦32.49bn), likely representing advance bookings or unearned revenue.
- Debt levels stable, with moderate increase in related-party payables (+9%).
Key Ratios
Metric 9M 2025 9M 2024 Comment
Gross Margin 48.7% 36.8% Improved operational efficiency
Operating Margin 37.2% 25.4% Better cost control
Net Profit Margin 26.2% 15.9% Strong earnings growth
ROE (Annualized) 8.4% 8.9% Improved shareholder return
Current Ratio 1.74x 1.62x Healthy short-term liquidity
Debt-to-Equity 1.57x 1.74x Improved leverage position
Outlook
- The hotel industry in Nigeria continues to recover post-COVID amid rising domestic tourism and business travel.
- Ikeja Hotel Plc’s strong cash reserves and improved profitability provide a solid foundation for expansion or renovation projects.
- Continued focus on cost efficiency, service quality, and digital transformation could further enhance margins.
- Investors can expect a robust FY2025, with potential for improved dividend payout if profitability sustains.
Analyst Comment
“Ikeja Hotel Plc delivered one of its strongest interim performances in recent years, with both top-line and bottom-line growth outpacing inflation and sector averages. The Group’s balance sheet remains healthy, providing room for further strategic investments.”
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Disclaimer
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