Red Star Express shareholders approve N0.35 dividend as profit soars 71%

Shareholders of Red Star Express Plc have approved a dividend payout of N0.35 per share for the 2025 financial year, representing an improvement over the N0.27 paid in 2024. 

The resolution was passed at the company’s 32nd Annual General Meeting (AGM), which was held virtually.

The dividend amounts to a total of N334.05 million, up from N257.69 million distributed in the previous year.

The approval comes on the back of a strong financial performance by the company in 2025. 

Red Star Express posted a profit before tax of N924.72 million, a 71 per cent increase compared to N542.15 million recorded in 2024. 

Profit after tax also surged by 59 per cent to N546.5 million, up from N343 million the previous year.

According to the company, the impressive growth was largely driven by revenue generation, which rose by 34 per cent to N21.66 billion in 2025, compared to N16.13 billion in 2024.

Speaking to shareholders at the AGM, the Chairman, Red Star Express, Mr. Suleiman Barau, said the 34 per cent increase in revenue was driven by growth across its express delivery, haulage and freight, and support services, as well as continued operational discipline.

Barau noted that the growth in profit reflects improved cost management,business development efforts, and increased customer confidence in its capabilities.

On future outlook, he said, the management remains focused on leveraging technology to strengthen transparency and accountability, optimize 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.

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

“While external uncertainties remain, including foreign exchange constraints and input cost pressures, we are confident that our operational agility and strategic direction will enable us to stay ahead of the curve and deliver long-term value to all shareholders,” said the Chairman of Red Star Express and operational improvements during the 2024 financial year.

He stated that the Group expanded its warehousing services with the addition of the warehouse facility at the Murtala Muhammed International Airport, Lagos, enhancing its 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,” he said.

Babura added that in the next coming year, the company would remain on deepening investment in technology, expanding its service portfolio 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.”

On future prospects, he stated that “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. This platform represents a new way of thinking about logistics that prioritises speed, visibility, customer convenience and operational intelligence.”