Red Star Express: Delivering long-term value to all stakeholders

Red Star Express Plc is not a new entity. As the sole licensee of FedEx Corp. in Nigeria, Red Star Express Plc remains the flagship, in the pick-up and delivery of express documents and parcels within the domestic and international market.

From when it began operation in October, 1992 to its listing in November 2007, the company has remained confident about its future.

Red Star Express re-echoed this optimism recently by assuring its shareholders at the company’s 32nd Annual General Meeting (AGM) that its operational agility and strategic direction will enable it to stay ahead of the curve and deliver long-term value to all stakeholders.

With a vision to be the company of first choice in the logistics service industry in Nigeria, Red Star Express Plc has 166 offices within Nigeria; deliveries to over 1,500 communities; and employs over 1,900 highly trained professional staff with over 700 vehicle fleet, according to its latest financial report and accounts.

“We remain optimistic about the future. Red Star Express is entering a new phase of transformation anchored on innovation and technology. We are currently in the launch and testing phase of our proprietary e-logistics platform, a solution designed to revolutionise the logistics landscape in Nigeria,” said Auwalu Badamasi Babura, Group Managing Director/CEO, Red Star Express Plc at the annual general meeting.

“This platform represents a new way of thinking about logistics that prioritises speed, visibility, customer convenience, and operational intelligence. As we deepen our logistics infrastructure and expand our service offerings, we remain committed to sustainable growth and long-term value creation. Through this innovation and the strength of our people, Red Star Express is positioning itself as a technology driven logistics partner for the future,” Babura said.

Also speaking, Suleiman Barau, chairman, Red Star Express Plc said at the 32nd Annual General Meeting of the company that “Despite the economic challenges, Red Star Express Plc delivered a strong financial performance”.

Impressive scorecard, improved reward for shareholders…

The company’s total group revenue rose by 34 percent to N21.60 billion in 2025, up from N16.27 billion in 2024.

“This performance was driven by growth across our express delivery, haulage and freight, and support services, as well as continued operational discipline,” Barau said.

Profit Before Tax (PBT) increased by 71 percent from N542.15 million in 2024 to N924.72 million in 2025. Similarly, Profit After Tax (PAT) rose by 59 percent to N546.5 million, compared to N343 million the previous year.

“This growth reflects improved cost management, business development efforts, and increased customer confidence in our capabilities,” the chairman told shareholders at the meeting.

Read also: Red Star Express posts N221m PBT amid boom in courier business

As part of the company’s continued commitment to rewarding shareholder confidence, the Board recommend and got shareholders approval for payment of a dividend of 35 kobo per share (2024: 27 kobo). The dividend was paid electronically on September 18 to shareholders whose names appeared on the Register of Members as of August 26. The share price which has steadied at N11 recently nears its 52-week high of N14.35 as against a 52-week low of N4.05. The company has 954,423,326 shares outstanding on the NGX.

Babura said that the logistics and transport industry recorded improved performance during the year under review.

According to the National Bureau of Statistics (NBS), the Transport and Storage sector grew by 6.53 percent in real terms year-on-year in 2024, marking a strong rebound from the sharp contraction of negative 30.17 percent recorded in 2023. All six sub-sectors, including post and courier services, experienced positive growth during the year. The sector contributed 1.03 percent to real GDP in 2024, slightly higher than the 1 percent contribution in 2023.

“This recovery reflects a gradual stabilisation in the economy and increased demand for intra-city logistics, express delivery, and e-commerce-driven logistics services,” Babura said.

“Despite the broader economic challenges, Red Star Express Plc delivered a strong financial performance,” he added.

Babura noted that the Group made key strategic and operational improvements during the financial year in review.

“We expanded our warehousing services with the addition of the warehouse facility at the Murtala Muhammed International Airport, Lagos, enhancing our capacity to support time-sensitive cargo and high-volume shipments.

“We also made meaningful progress in technology adoption, introducing system upgrades that improved logistics visibility, automated key processes, and enhanced service reliability.

“A review of our pricing model allowed us to remain competitive while better aligning with operational realities. In addition, stronger cost management practices helped us drive efficiency across our subsidiaries and improve margins,” Babura said.

Red Star Express Plc was incorporated as a Private Limited Company on July 10, 1992 under the name, Red Star Express Nigeria Limited and commenced business operations on October 12, 1992. The Company was subsequently converted to a Public Company in July 2007 and had its shares listed on the Nigerian Exchange Limited on November 14, 2007.

The Company has three wholly owned subsidiaries; Red Star Logistics Limited, Red Star Freight Limited and Red Star Support Services Limited. The Group is principally engaged in the provision of courier services, mail management services, freight services, logistics, ware housing and general haulage.

Future outlook….

Looking ahead, Red Star Express Plc remains focused on leveraging technology to strengthen transparency and accountability, optimise delivery speed, and improve the customer experience.

“Our ongoing investments in digital platforms, regional network expansion, and new delivery models are all designed to support long-term growth,” Barau said.

“We will also continue to build capacity across our workforce, by developing and encouraging a culture of accountability, innovation, and excellence,” he further said.

Also speaking, Babura said, “Our focus in the coming year will remain on deepening investment in technology, expanding our service portfolio, and strengthening Red Star Express’s presence in both domestic and regional markets. These priorities are designed to sustain long-term growth and position Red Star Express as a trusted logistics partner across Nigeria and West Africa”.