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By Chukwuma Umeorah
Red Star Express Plc (REDSTAREX) has projected a profit after tax (PAT) of N302.64 million for the first quarter ending 30 June 2026, according to its cashflow and earnings forecast submitted to the Nigerian Exchange Limited (NGX).
The logistics company expects to generate revenue of about N1.03 billion during the period. Cost of sales is projected at N528.28 million, which is expected to result in a gross profit of approximately N502.86 million. In addition, the company forecast other income of N4.53 million, which would support overall earnings for the quarter.
Administrative expenses are estimated at N315.23 million, while interest and similar charges are projected at N0.6 million. These costs are expected to bring total operating expenses to about N315.77 million.
After accounting for these expenses, profit before tax is projected at N451.71 million. The company estimates an income tax expense of N149.06 million, leaving profit after tax at N302.64 million for the quarter.
Cash flow projections show that cash generated from operations is expected to reach about N223.36 million during the period, despite estimated payments to suppliers and employees amounting to N5.47 billion.
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REDSTAREX also plans capital expenditure of about N92.01 million on property, plant and equipment, while interest income of N123.68 million is expected to support investing activities.
Overall, the forecast indicates a net cash inflow of N206.56 million, which would increase the company’s cash and cash equivalents from N1.18 billion at the beginning of the quarter to about N1.39 billion by the end of the period.
In its audited financial results for the 2025 financial year, the company showed improved performance across key indicators. Group turnover rose to N17.31 billion for the nine-month period ended 31 December 2025, compared with N15.54 billion recorded in the corresponding period of the previous year.
Profit before tax also increased to N1.03 billion from N570.25 million in the comparable period, while profit after tax rose to N700.21 million from N372.63 million.
The improved earnings performance was also reflected in earnings per share, which increased to 73 kobo from 39 kobo recorded in the previous year’s comparable period.
REDSTAREX’s financial position remained stable, with total assets standing at N10.59 billion as at 31 December 2025, while shareholders’ funds rose to N5.25 billion during the period.
