GreenTree Hospitality Group Full Year 2023 Earnings: Misses Expectations

GreenTree Hospitality Group (NYSE:GHG) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥1.63b (up 74% from FY 2022).

• Net income: CN¥265.8m (up from CN¥382.2m loss in FY 2022).

• Profit margin: 16% (up from net loss in FY 2022). The move to profitability was driven by higher revenue.

• EPS: CN¥2.60 (up from CN¥3.71 loss in FY 2022).

revenue-and-expenses-breakdown

All figures shown in the chart above are for the trailing 12 month (TTM) period

GreenTree Hospitality Group Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 15%.

In the last 12 months, the only revenue segment was Hotels & Motels contributing CN¥1.63b. Notably, cost of sales worth CN¥947.4m amounted to 58% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥311.9m (75% of total expenses). Explore how GHG's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Hospitality industry in the US.

Performance of the American Hospitality industry.

The company's shares are down 4.3% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We have a graphic representation of GreenTree Hospitality Group's balance sheet and an in-depth analysis of the company's financial position.

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