Red Star Express Doubles Profit as E-commerce and Logistics Growth Drive 98% Surge in Pretax Earnings
Red Star Express Plc has nearly doubled its pretax profit to N371.2 million for the second quarter ended September 2025, up from N186.7 million in the same period last year, marking one of its strongest quarterly performances in recent years.
The company’s six-month pretax profit also climbed 98% year-on-year to N675 million, supported by rising revenue and a surge in other income.
Turnover for the quarter grew by 14.24% to N5.8 billion, bringing total revenue for the six months to N11.1 billion, up 14.9% year-on-year. The courier segment remained the company’s largest revenue driver, contributing N5.2 billion, followed by freight (N2.4 billion), logistics (N1.9 billion), and support services (N1.4 billion).
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Strong operational growth amid rising costs
The company’s cost of sales rose by 8.27% to N4.7 billion, but this was outpaced by a sharp increase in gross profit, which reached N1.15 billion, up 47.74% from N781 million a year earlier.
Red Star’s other income rose 281.27% to N76.3 million, buoyed by sundry and non-core earnings, which helped offset increased administrative and operating expenses. These expenses climbed 47.89% to N829.7 million, reflecting higher logistics and maintenance costs amid inflationary pressures and rising diesel prices.
Operating profit grew 66.68% to N336.5 million, while finance income of N44.8 million more than covered finance costs of N10.2 million, leaving pretax profit at N371.2 million, up 98.83% from the previous year.
After-tax profit rose even more sharply, nearly doubling to N252.4 million from N126 million in the same quarter of 2024.
Resilient balance sheet and strong equity position
Total assets stood at N10.4 billion, up 1.55% from the previous period, with trade debtors of N3.1 billion and property, plant, and equipment valued at N2.9 billion forming the largest asset components. Total equity rose to N5 billion, driven mainly by retained earnings, which climbed 4.33% to N3.01 billion.
Liabilities were largely stable at N5.4 billion, up slightly from N5.3 billion, with other creditors and accruals (N2.9 billion) accounting for the bulk.
Red Star’s stock has been one of the strongest performers on the Nigerian Exchange in 2025, trading at N11 per share as of October 24 — a 149.43% gain year-to-date, signaling robust investor confidence.
E-commerce and logistics demand boost performance
Analysts attribute Red Star Express’s impressive results to rising demand for e-commerce deliveries and logistics services across Nigeria. With more businesses moving online and consumers increasingly relying on home deliveries, logistics companies like Red Star have experienced a steady rise in parcel volumes.
The company has also benefited from increased trade activity driven by the post-subsidy removal environment, where businesses are optimizing distribution networks to manage costs. Its freight and logistics segments, which saw higher utilization rates, have particularly contributed to the improved turnover.
Outlook: Expansion and digital transformation
Red Star Express’s ability to maintain profitability despite cost pressures is attributed to growing operational efficiency and diversification. The company has been expanding its warehousing and cold chain logistics capabilities, while also investing in technology platforms to enhance route optimization and customer tracking.
Nigeria’s courier and logistics market has grown rapidly in recent years, bolstered by digital commerce, fintech-driven payment systems, and an expanding consumer base. Red Star Express’s strong half-year results position it well to capture further market share as logistics and supply-chain solutions become critical to the nation’s post-pandemic economic structure.
With its profitability and equity base improving, analysts believe Red Star Express could be better positioned to attract institutional investors or explore capital market instruments to fund expansion in 2026, particularly in regional freight and express delivery services.
