Red Star Express Offers N.40 Dividend, Despite 18.6% Profit Drop

The board of courier services, freighting services, logistics, warehousing and general haulage company- Red Star Express Plc, on Thursday presented its audited financials for the year ended March 31, 2018, showing that while revenue rose by 15.19%, net profit slipped 18.55%, compared to prior year.

The directors however recommended a dividend payout of N236m or 40 kobo per share, same as was paid last year.
Revenue for the period rose by N1.108bn from N7.298bn to N8.407bn; the bulk of which was the N4.406bn income from courier services, up marginally from N4.049bn; followed by N1.642bn from support services relating to mail room management and other delivery services, which rose from N1.499bn; while freight services involving clearing and forwarding of goods (import and export services) rose from N535.843m to N794.971m.

Cost of sales rose to N5.625bn, as against the N5.111bn, resulting in gross profit of N2.782bn, up by 27.2% from N2.187bn reported in 2017.
Administrative expenses rising to N2.178bn from N1.581bn, representing a N597m or 37.76%; swelled by the N636.477m for employee benefit expenses, up from N455.618m; repairs and maintenance took N411.433m from just N123.972m; followed by the N110.98m depreciation from N70.624m; and the N104.624m impairment on receivable, from N155.25m.

Other operating income slipped N39.376m, or 78.02% from N50.464m to N11.088m. It was helped by sundry income (recovery of bad debts and insurance claims received), which slumped to N6.274m from N24.47m; and exchange gain from N25.802m to N4.3m. Total operating profit therefore dropped to N614.931m, representing a N41.695m or 6.34% drop from N656.626m.
Finance income stood at N23.318m from N17.684m; just as finance cost climbed from N21.11m to N27.66m. resulting in profit before tax of N610.589m, which was lower N653.2m.

Tax for the period increased to N263.031m from N226.444m, leaving net profit at N347.558m, N79.198m or 18.55% down from N426.756m recorded in the corresponding period of 2017. Total comprehensive income for the year net of tax fell to N331.338m, from N427.183m, which translated to earnings per share of 59 kobo, rom 72 kobo, from which the directors recommended the dividend of 40 kobo each.

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