Red Star Express Plc, one of Nigeria’s leading logistics and courier companies, has seen its profit before tax reach a record high, beating forecasts even amid inflation, high energy costs, and currency pressures.
Pre-tax profit surged 71 percent to N924.72 million, up from N542.15 million, while net profit rose 59 percent to N546.5 million, compared with N343 million the previous year, according to its financial results for the year ending March 31, 2025.
Red Star Express also recorded a 34 percent jump in revenue to N21.60 billion in 2025, compared to N16.27 billion in 2024.
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“This growth reflects improved cost management, new business development, and increased customer confidence in our ability to deliver,” Auwalu Badamasi Babura, group managing director/chief executive officer, told BusinessDay at the company’s 32nd Annual General Meeting held Thursday in Lagos.
“Our numbers show that resilience and innovation can thrive even when the operating environment is harsh, ” he added. “We will continue to build on this momentum.”
Nigeria continues to grapple with high inflationary pressures and currency volatility, even though stability is gradually becoming the order of the day.
In 2024, inflation reached a near three-decade high, shrinking consumer spending, blowing up operating costs, while margins took the heat. The over 40 percent loss in value of the naira in the same year dealt a major blow to businesses heavily exposed to foreign exchange.
Petrol prices more than doubled, rising 81.1 percent year-on-year from N696.79 per litre in March 2024 to N1,261.65 in March 2025. Diesel also jumped 19.25 percent, from N1,341.16 to N1,599.30 per litre within the same period.
“These sharp increases had a direct effect on our operations, especially last-mile delivery and haulage,” Barau said. “But even in the face of these pressures, we stayed focused, disciplined, and forward-looking.”
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Despite the squeeze, the company expanded warehousing capacity with a new facility at Murtala Muhammed International Airport in Lagos to handle time-sensitive cargo and high-volume shipments.
Red Star also rolled out technology upgrades to improve logistics visibility, automate operations, and strengthen reliability. A review of its pricing model helped balance competitiveness with rising operating costs.
“Our focus going forward is on deepening technology adoption, expanding our service portfolio, and strengthening our footprint across Nigeria and West Africa,” the CEO said.
To reward shareholders, the Board recommended a dividend of 35 kobo per share for 2025, up from 27 kobo in 2024. If approved, the dividend, amounting to N334.05 million, will be paid on September 18, 2025, to those on the company’s register by August 26, 2025.
Highlighting key corporate social responsibility, the company, through the Red Star Foundation, awarded scholarships to ten students from Government Secondary Schools in Oshodi-Isolo, Lagos, reinforcing its long-term commitment to education.
“These initiatives reflect our belief that businesses must contribute to communities in meaningful ways,” said Suleiman Barau, chairman, Red Star Express.
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The firm is also piloting a proprietary e-logistics platform, expected to transform customer convenience and operational intelligence in Nigeria’s logistics sector.
“We are not just thinking about today’s deliveries,” Babura said. “We are building the logistics company of tomorrow, one that blends technology, speed, and trust.”
With inflation, foreign exchange shortages, and rising costs still in play, management admitted the external environment will remain challenging. But both the Chairman and CEO expressed optimism.
“Our agility, strategic investments, and commitment to innovation will keep us ahead of the curve,” Barau said. “We will continue to deliver value to our shareholders, customers, and partners.”
