TPS Eastern Africa Plc recorded a net profit of KSh 870.9 million at the close of the financial year ended 31st December 2023, more than double earnings compared to KSh 379.7 million posted over a similar period in 2022.
- •The firm’s finance costs doubled to KSh 1.1 billion in 2023 from KSh 586.7 million in 2022.
- •Earnings per Share, which measures profitability of the firm, increased to KSh 2.89 in 2023 from KSh 1.45 in 2022.
- •TPS’s total comprehensive profit for the year grew from KSh 284.8 million in 2022 to KSh 1.7 billion in 2023.
The company’s revenue from contracts with customers increased to KSh 9.7 billion in 2023 from KSh 6.9 billion in 2022. Out of these earnings, KSh 816.6 million was attributed to the owners of the hotel chain.
This improved financial performance has been attributed to a strong recovery in the travel, conference, and leisure segments of the tourism business in Kenya and East Africa.
TPS Eastern Africa Hit by a Weakening Kenya Shilling against the US$ in 2023
Depreciation of the Kenya Shilling against the US$ in 2023 led to increased interest costs by KSh 148.2 million and unrealized exchange losses by KSh 408.4 million on the Group’s US Dollar-denominated debt.
The Hospitality Group gained significantly from growth in business volumes in 2023 from both domestic and regional markets, including leisure, corporate travels, events, and functions.
The Board of Directors of TPS Eastern Africa, which owns the Serena Hotels chain, said the Group and its subsidiaries contributed a total of KSh 2.4 billion in direct and indirect taxes as well as KSh 469 million in royalties and rents to the revenues of Counties and Local Authorities of regions in Easter Africa where Serena Hotels and Properties has a presence. This is compared to KSh 2.2 billion in taxes and KSh 374 million in royalties and rents in 2022.
TPS Shareholders will not receive any dividend payments in a decision directors of the firm said was undertaken to channel the financial resources towards upgrading its properties, improving on technology, and enhancing other business resilience measures.
TPS closed its last trading day on April 18, 2024, at KSh 20.05 per share on the Nairobi Securities Exchange (NSE), recording a 9.3% gain over its previous closing price of KSh 18.35. The firm began 2024 with a share price of KSh 16.45 and has since gained 21.9% on that price valuation, ranking it eighth on the NSE in terms of year-to-date performance.