Firm underscores need for organisational resilience to navigate logistics challenges

With the sharp downturn and notable challenges that have affected the transport and logistics sector, Red Star Express has underscored the need for strategic adaptation and resilience for operators in the sector to navigate the current challenging conditions.

Group Managing Director/Chief Executive Officer, Red Star Express, Auwalu Babura, while giving an industry review during the firm’s 31st yearly general meeting, said the sharp downturn highlights a severe impact of economic volatility in the sector.

Quoting figures from the National Bureau of Statistics (NBS), he said the real Gross Domestic Product (GDP) for the transport and storage sector plummeted to -50.64 per cent for the year ended March 31, 2024, a dramatic decline from the 51.66 per cent growth recorded in 2023.

Additionally, he said the growth in the postal and courier services sector slowed to 2.39 per cent in 2024 from 4.91 per cent in the previous year, while the transport services sector also saw a decrease with growth at 3.36 per cent when compared to 4.90 per cent in 2023.

However, despite the challenging environment, he said Red Star Express has demonstrated resilience and growth. According to him, the firm’s revenue for the financial year reached N16.1 billion, a substantial increase from N13.8 billion in 2023, reflecting a growth of 16.1 per cent.

Further speaking on the company’s testament to its successful expansion efforts and robust operational strategies, Babura, said the firm’s Profit After Tax (PAT) rose to N343 million from N313 million, marking a 9.6 per cent increase, while Earnings per Share (EPS) improved to 36 kobo per 50 kobo share, up from 33 kobo in the previous year.

Noting that the financial year has been a significant performance for the firm and its subsidiaries despite the tough business climate, he boasted that it secured a certificate of registration as agents of foreign airlines and obtained a recruiter’s license, further strengthening its service portfolios and enhancing its capacity to expand its service offerings.