Red Star Express Progresses, Marks Remarkable Recovery
- Feb 10, 2021
- Red Star Express
One of Nigeria’s leading logistics company, Red Star Express Plc, has announced a full recovery after a turbulent 11 months of contending with the economic effects of the COVID-19 pandemic and the events that plagued the Nigerian business environment. The company closed out the year with a profitable financial report that has over shadowed the losses, marking a remarkable recovery. This was reiterated upon by the Chief Executive Officer of the company during a recent interview in Lagos.
According to the Chief Executive Officer, Red Star Group, Dr. Sola Obabori, the company experienced a drop in its financial performance due to the pandemic. “Red star experienced a drop in its financial performance between April and June 2020 due to the directives enforced globally. Although the business picked up from July onwards with the company recording profits but not enough to offset the losses earlier experienced, the ENDSARS protest caused a brief setback with the company losing as much as 10 working days. The festive season presented a chance for recovery which the company took advantage of, with many deliveries being fulfilled”.
Speaking further, he reiterated Red Star’s commitment to employees. As opposed to what was obtainable in order sectors of the economy, Red Star didn’t lay off staff and continued with the usual payment of salaries. “Despite the economic challenges, the company did not engage in large lay-offs with many staff members marinating their jobs. Salaries continued to be paid and operations ran as normal, albeit with minor adjustments”.
“The Company also recorded success of acquiring several assets including trucks and several operational vehicles. Investments were also made to improve the company’s technological architecture to enhance Tracking/Visibility, Automation and Package Security”, he added.
He confessed that even though the pandemic and subsequent restrictions on the movements of goods have negatively affected the cargo sub-sector, Red Star was able to survive as a result of its successful diversification as well as the scale up of the company’s logistics services, which has kept them ahead of the curve.