Red Star Express Revenue Rise 22 Per Cent as Transport Costs Climb 41 Per Cent

Red Star Express revenue increased by 22 per cent in the first quarter of the 2026 financial year as the logistics company benefited from stronger freight, courier and logistics operations despite a sharp rise in transport-related operating costs.

The company reported revenue of N6.45 billion for the three months ended June 30, 2026, up from N5.29 billion in the corresponding period of 2025. However, administrative and operating expenses climbed by approximately 41 per cent to N1.29 billion from N917.5 million, reflecting higher costs associated with transportation, operations and inflationary pressures.

Despite the increase in costs, profit before tax rose 17.4 per cent to N356.5 million, compared with N303.8 million a year earlier, while profit after tax increased to N221.1 million from N206.6 million.

The strongest growth came from the company’s freight business, where revenue surged by more than 61 per cent to N1.74 billion from N1.08 billion in the same period last year.

Courier services, the company’s largest business segment, generated N2.78 billion, up from N2.56 billion, while logistics revenue increased to N1.10 billion from N941 million. Support services also contributed to growth, with revenue rising to N832 million from N715 million.

The performance highlights growing demand for freight and logistics services as businesses continue to rely on efficient supply chain and distribution networks.

While revenue improved, Red Star Express faced mounting operating costs during the quarter.

Administrative and operating expenses rose by about 41 per cent, driven by higher spending on employee benefits, repairs and maintenance, communication, electricity, publicity, bank charges and other operational costs associated with running logistics services in an inflationary environment.

The company also recorded higher staff costs during the period, reflecting increased personnel expenses across its operations.

Despite the challenging operating environment, the company’s earnings remained resilient.

Basic earnings per share improved to 23 kobo from 22 kobo, while shareholders’ equity increased to about N5.38 billion, supported by stronger retained earnings.

The results underscore the resilience of Nigeria’s transport and logistics sector, where growing demand for freight and supply chain services continues to support revenue growth even as operators contend with rising operating expenses.