Red Star grows profit by 87% and demonstrates resilience
Red Star Express Plc has declared a Group Profit Before Tax of N413.9 million for the year ended 31 March, 2022, an impressive increase of about 87%, from the sum of N220.8 million recorded in the same period of 2021. The information was disclosed in a statement of comprehensive Income released Wednesday by the Management of the Group.
Also putting up a strong showing, is the group’s revenue earning of N12.6 billion, an increase of 34% over the figure of N9.4 billion recorded in the corresponding period of 2021. Its share capital rose modestly to N477 million from N463 million.
The Group’s investments in property, plant and equipment equally recorded a significant increase from the sum of N2.6 billion in 2021 to N2.9 billion in 2022. Its total non-current asset increased by over 300m, while the total balance sheet size recorded a marginal increase.
Red Star has demonstrated an impressive resilience, as its many industry peers grapple with harsh operational climate realities arising from the untold impact of COVID 19, high rate of inflation and other macro economic pressures.
The Group CEO, Mr. Auwalu Babura, reiterated that the company’s steady positive performance was attributable to the commendable resilience of the staff as well as the application of prudence and steady innovative measures by management.
It’s Head of Finance, Mr. Valentine Onyibo forecast an easier sail in the years ahead. “I can authoritatively tell you that with this financial result, we have laid a solid foundation for the years ahead. Of course, we have taken time to engage in some reviews and have identified areas we need to improve upon. We are very optimistic that the first quarter result which is due in couple of weeks, shall come out stronger and better.
Mr. Babura explained that for a logistics company that has to contend with high operational costs of diesel and other related expenses (inevitably required to operate its fleet of trucks nationwide), Red Star has had to successfully adopt some high level of application of prudence to navigate challenging murky business waters. In spite of the challenges, he explained that the company, being a leading logistics firm with high level activities in the haulage, freight, outsourcing and express delivery business, has continued to invest in various assets to satisfy our numerous customers.