Trans-nationwide reported that it grew profit 318 percent to N18.59 million in six months to June 2019.
The surge was on account of improved revenue of the Lagos-based logistics firm which rose 13 percent from N362.65 million last year, as well as income from exchange gains and disposal of assets.
Trans-nationwide posted N410.35 million as revenue although it saw a slowdown of 4 percent in courier services, its largest income segment.
Across other segments, Trans-nationwide made 40 percent more from its Logistics business, 19.58 percent more from Internal mailing, 250 percent more from Mass mailing and some 5 percent higher revenue from Freight.
The company’s other revenue segments that did not improve are Mailbag, and Warehouse. Direct cost for Trans-nationwide increased to N158.35 million, 3.8 percent over N152.54 Million recorded a year ago. The rise in direct cost was driven by a sharp increase in freight expense.
Given the faster pace of growth in revenue, gross profit of Trans-nationwide rose by 19.94 percent to N252 million. The performance meant the transport and distribution company made N61.41 from every N100 it earned as revenue in the period. This is N3.47 more than it made last year.
Trans-nationwide almost doubled its other income in the half-year period which the company posted as N6.67 million. Exchange gains spiked 168.18 percent while assets disposal of N4.84 million supported income.
In the period also, the company incurred higher administrative expenses of N235.78 million in mid-2019 as against N205.56 million, a year ago. Trans-nationwide also saw its finance expense rise 69.81 percent in the period.
Notwithstanding, the logistics firm was able to post 211 percent higher profit before taxation and a constant tax expense from H1 2018 buoyed earnings by 318.32 percent in the period.
Given the performance, Trans-nationwide retained N4.53 as profit from every N100 revenue in 2019 half-year, from N1.23 per N100 revenue in the same period of 2018.
Shares of the company remained flat at 77 kobo at the close of trading Tuesday. Year-long, Trans-nationwide shares have advanced by 18.46 percent, outperforming the benchmark equity index which was down -12.42 percent same day.
Trans-Nationwide Express Plc is a transport and distribution services company involved in domestic and international Express delivery, haulage, freight, and other ancillary transportation and storage services.
SEGUN ADAMS
