Ikeja Hotels 2025 earnings show 47% rise in profit before tax to N12.56 billion, boosted by higher hotel revenue, finance income, and zero finance costs

Ikeja Hotels Plc delivered a strong financial performance in the 2025 fiscal year, posting a profit before tax of N12.56 billion, up 47.3% from N8.54 billion in 2024.

Also read: NGX admits UBA shares as capital comfortably exceeds CBN rule

The results, disclosed in the company’s unaudited financial statements filed with the Nigerian Exchange (NGX), reflected higher revenue, rising finance income, and the elimination of finance costs.

Group revenue rose sharply to N25.84 billion, up 37.8% year-on-year, driven largely by improved hotel operations, stronger room occupancy, higher pricing, and increased event-related activities.

Gross profit rose 68% to N12.74 billion as revenue growth outpaced the cost of sales, which increased by 17.3% to N13.11 billion.

Operating profit also improved to N9.94 billion, up 18.6%, highlighting better operating leverage and margin expansion.

A notable boost came from finance income, which surged 75.8% to N2.62 billion, while finance costs dropped to zero from N1.33 billion in 2024, materially amplifying pre-tax profitability.

Profit after tax stood at N8.30 billion, marking a 13.9% increase, with earnings per share rising 14% to 384 kobo.

On the balance sheet, total assets increased to N94.88 billion from N83.67 billion, supported by higher cash and cash equivalents of N33.15 billion.

Total equity attributable to shareholders expanded to N38.52 billion, bolstered by retained earnings of N22.19 billion.

Total liabilities rose moderately to N56.28 billion, indicating manageable leverage alongside stronger earnings capacity.

The company’s strong results were driven mainly by core hotel operations rather than one-off gains, with rising operating expenses absorbed by faster revenue growth.

The elimination of finance costs and higher cash balances strengthened the balance sheet, improving financial flexibility.

Also read: NGX confirms listing of 3.156billion UBA shares, deepening liquidity, market capitalisation

Despite the strong 2025 performance, Ikeja Hotels shares have declined around 15% year-to-date in 2026 on the NGX, following a strong rally the previous year.