Red Star Express Shareholders Commend N0.27kobo Dividend Payout Amid Challenges
Kayode Tokede
The shareholders of Red Star Express Plc, yesterday appreciated the management for paying N0.27 kobo from its 2024 financial year (FY) performance, stressing that the company last year withstand local and foreign macro economy challenges.
The company in 2024FY reported N16.13 billion revenue, representing an increase of 16.24 per cent from N13.87 billion reported in 2023FY.
Red Star Express’s profit after tax closed 2024 FY at N343 million, an increase of 9.6 per cent over N313.9 million declared in 2023, while profit before tax for 2024 was at N542 million, compared to N593 million in 2023.
Additionally, the company’s Earning Per Share (EPS) stood at 36 kobo per 50 kobo share compared to 33 kobo per 50 kobo share in the previous year.
The management had recommended to shareholders a dividend of N0.27 kobo (2023: N0.20 kobo), amounting to a total of N257.69million (2023: N190.88 million).
Speaking to shareholders at the 31st Annual General Meeting (AGM) in Lagos, the Chairman, Red Star Express, Suleiman Barau stated that the company’s 2024 FY performance underscores its resilience and ability to adapt to challenges operating environment.
On future outlook, he said, “As we look ahead to the new financial year, we are excited about several strategic initiatives that position us for sustainable growth and enhanced service delivery. One of our major initiatives includes the adoption of cutting-edge e-logistics technology to streamline our operations, improve efficiency, and expand our service offerings.
“Additionally, we are positioning our business to explore ore opportunities in the identified growth services that have significantly contributed to our financial year’s results. We remain committed to maintaining best practices in cost management to ensure we continue to deliver strong performance and maximize returns for our esteemed shareholders.
“We are also committed to investing in our workforce through continuous training and development programs to ensure our tea remains highly skilled and motivated. By fostering a culture of excellence and innovation, we aim to maintain our leadership position in the logistics industry.
On his part, the Group Managing Director/ CEO, Red Star Express, Mr. Auwalu Babura stated that the 2024 FY performance is a statement to the management successful expansion efforts and robust operational strategies.
He expressed that the 2024FY performance has been a period of significant achievements for the company and its subsidiaries, stressing that the performance led to Red Star Express securing a certificate of registration as agents of foreign airlines, and also obtained a recruiter’s licence that further strengthen its service portfolios.
“These advancements have enhanced our capacity to expand our service offerings. Our strategic partnership with FedEx continues to strengthen our international presence. Our strategic focus will continue to emphasize enhancing brand management and optimizing logistics operations. We are committed to scaling our e-commerce capabilities and integrating technology-driven solutions to better serve our customers. “
He said the future prospects for Red Star Express is set to be robust, driven by our commitment to leveraging on advanced technology.
“Red Star Express is introducing a new technology-driven e-logistics serve, aiming to revolutionise our logistics operations and enhance our service delivery.
“We will continue to build on our warehousing capabilities and strengthen our domestic and international partnerships. We aim to improve operational efficiency, expand our market reach and provide innovative solutions that meet the evolving needs of our customers,” Babura added on future prospects of the company.
