Red Star Express revenue jumps to N16.1b .....Targets opportunities in domestic, regional markets

 

Red Star Express revenue jumps to N16.1b 

.....Targets opportunities in  domestic, regional markets

From Left : Group Managing Director/ Chief Executive Officer , Red Star Express PLC, Auwalu Babura;  Chairman Board of Directors,Suleiman Barau; Company Secretary,  Frances Akpomuka ; Group Executive Director , Charles Ejekam  and  Non - Executive Director, Sulaiman Koguna  during  the 31st Annual General Meeting of the company in Lagos on Thursday.

Indigenous courier and logistics company : Red Star Express Plc has concluded plans to explore business opportunities within the domestic and regional markets as its revenue jumps to over N16.1 billion with the  declaration of profit running into 10 per cent in the just concluded financial year.

This is as the company said it is fine tuning strategies to diversify its revenue streams and mitigate risks associated with the current economic volatility.

Its Group Managing Director / Chief Executive Officer, Auwalu Badamasi Babura, disclosed this in Lagos yesterday during the 31st, Annual General Meeting of the courier/ logistics company.

He said the company posted a sterling performance despite the runaway inflation and tough business climate.

Reviewing the performance and achievements of the company's financial year, which ended March31, 2024, Babura said it demonstrated resilience and growth.

He said : " In this challenging environment, Red Star Express has demonstrated resilience and growth. Our revenue for the financial year reached N16.1 billion, a substantial increase from N13.8 billion in the previous year, reflecting a growth of 16.1 per cent. Our Profit After Tax (PAT) rose to N343 million from N313 million, marking a 9.6 percent  increase.

Additionally, Earnings per Share (EPS) improved to 36 kobo per 50 kobo share, up 33 kobo in the previous year. These results are a testament to our successful expansion efforts and robust operational strategies."

Babura listed the challenges that confronted its operations to include : inflation jump, and soaring fuel cost.
"The financial year 2023/2024 presented our company with a challenging operating environment, influenced by several significant economic factors in Nigeria.
"These included the ongoing impact of global economic instability, the significant increase in inflation, and the continued volatility in fuel prices. According to the National Bureau of Statistics (NBS), the inflation rate surged to 33.20 per cent  in March 2024, compared to 22.04 per cent  during the same period in the previous year.
"The average retail price paid by consumers for Premium Motor Spirit (Petrol) in March 2024 was N696.79, indicating a 163.65 per cent  increase compared to March 2023. Additionally, the average retail price of Automotive Gas Oil (Diesel) increased by 59.51 per cent  on a year-on-year basis.
"These increases significantly impacted the cost of interstate haulage and overall operating expenses. Despite these challenges, Nigeria's GDP grew by 2.98 per cent during the year, reflecting moderate economic growth," he said.
Babura said the myriad of challenges experienced in the course of the year, compelled the management team to adapt strategically in order to keep afloat.
Going forward, he said the company will continue to focus on its investment in people, innovation as well as technology.
He said : " This financial year has been a period of significant achievements for Red Star Express and its subsidiaries. As part of the giant stride we recorded in the financial year, we secured a certificate of registration as agents of foreign airlines, and we also obtained a recruiter's licence, further strengthening our service portfolios.
"These advancements have enhanced our capacity to expand our service offerings. Our strategic partnership with FedEx continues to strengthen our international presence. Additionally, the operational launch of our new warehouse facility at Murtala Mohammed Airport in Lagos marks a major milestone in our infrastructure expansion.
"We have also successfully extended our e-commerce logistics services to new regions, further improving our market reach and operational efficiency.
"Our strategic focus will continue to emphasize enhancing brand management and optimizing logistics operations. We are committed to scaling our e-commerce logistics capabilities and integrating technology-driven solutions to better serve our customers.
"We will explore new partnerships and business opportunities within domestic and regional markets to diversify our revenue streams and mitigate risks associated with economic volatility."
On its future prospects and initiatives, Babura said the company will continue to leverage technology as it concludes plans to introduce a new technology-driven e-logistics service, aiming to revolutionize our logistics operations and enhance our service delivery.
He said : " As we look ahead to the new financial year, we are excited about several strategic initiatives that position us for sustainable growth and enhanced service delivery. These include the  adoption of cutting-edge e-logistics technology to streamline our operations and improve efficiency.
"Rapidly expand our service offerings so our consumers get greater choice and value. Explore more strategic growth opportunities, massive investment  in talent and technology, build on warehousing capabilities as well as strengthen  our domestic and international partnerships.
"We aim to improve operational efficiency, expand our market reach, and provide innovative solutions that meet the evolving needs of our customers."