• Wednesday, February 28, 2024
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Courier services, export lift Red Star Express’ profit by 52%

Red Star Express

Significant improvement in courier services segment of Red Star Express has led to a 52 percent rise in its total income for the period ended March 31, 2019. The total comprehensive income of Red Star Express for the period rose to N504.64 million from N331.34 million in 2018.

Red Star Express has six lines of operations which are courier services, mailroom management, freight services, logistics, warehousing and support services. Revenue from the courier segment of its operations increased from N4.406 billion in 2018 to N5.85 billion in the current year, translating to 32.8 percent rise during the period. The firm also recorded 32.84 percent in its export earnings.

Logistics services earned the firm N1.62 billion, an increase of 8.8 percent when compared with N1.49 billion it realised in 2018. Freight services generated N872.12 million, representing 9.7 percent over N794.97 million made in 2018. Also, revenue from support services improved by 22.5 percent to N286.29 million as against N233.70 million it made in 2018.

On the flip side, revenue from both mail management and warehousing fell during the period. Whereas the firm made N1.49 million as revenue from mailroom management in 2018, it fell by 2.78 percent to N1.37 billion in 2018. Revenue from warehousing decreased by 8.7 percent to N64.6 million in 2019, from N70.7 million in 2018.

Overseas performance of Red Star Express during the last financial year was better by 32.84 percent. Revenue from its overseas operations rose to N879.5 million up from N662.1 million in 2018. Similarly, revenue made within Nigeria rose by 18.61 percent from N7.74 billion in 2018 to N9.18 billion in 2019.

BusinessDay in-house analysts attributed the stellar performance of the company to a change of business model by the company’s management in 2018.

“During the year under review, the activities of the Company expanded beyond the provision of courier, freight forwarding and logistics services, mailroom management services, warehousing, e-commerce services and general haulage to include movement of agricultural products as well as printing & packaging”, the company stated in its audited annual report for 2019.

Red Star Express’ profit margin rose from 3.94 percent in 2018 to 5.01 percent in the current year while its return on average asset (ROAA) and return on average equity (ROAE) stood at 8.8 percent and 17.6 percent respectively.

The board of directors has proposed 43 kobo dividend per share to shareholders whose names appear on the register of members on or before July 17 2019. The payment of the proposed dividend is subject to approval of shareholders at the annual general meeting slated for August 8, 2019 at the Muson Centre, Onikan Lagos.