Red Star Records Profitable Financial Report in 2020

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, Red Star Express Plc is hopeful about the future as it is gradually but steadily making remarkable progress in its financial performance. 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 global pandemic. 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 some sectors of the economy, Red Star didn’t lay off staff. “Despite the economic challenges, the company did not lay-off staff during and after the lockdown. Salaries continued to be paid and operations ran as normal, albeit with minor adjustments”.

 

Indeed, significant investments were made. “The company also recorded success in acquiring new assets including 17 trucks (40 and 45 tons) and several operational vehicles. Investments also included improvement in 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 negatively affected the cargo sub-sector, Red Star Express Plc 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; a demonstration of the company’s resilience in the midst of uncertainty.

Red Star Express Plc is a Licensee of Federal Express (FedEx) Corporation, the world’s largest delivery solutions provider. It has over 150 offices in Nigeria; with international offices in Niger Republic, Burkina Faso and Benin Republic. Its network spans over 1,500 communities in Nigeria and 214 countries worldwide. Red Star Express Plc is made up of 4 divisions and business units specializing in areas such as Express Delivery, Logistics, Freight, Outsourcing services, Supply Chain Management, E-Commerce Facilitation, Printing and Packaging, E-Archiving, as well as Agro Trade Logistics

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