Tranex Logistics Report N79bn Loss In Q3
Trans-Nationwide Express Plc, a logistics and courier service company, has reported a N79m loss in the third quarter of 2020 as against a profit of N4.67m posted in 2019.
The firm in a report to the Nigerian Stock Exchange also noted that revenue declined by 7.5 per cent Year-on-Year, from N548.3m as of the corresponding period last year to N507.17m this year.
The dip, according to report, was largely due to a decline in revenue from courier services, which contributed about 54.1 per cent of the total revenue as of Q3 2020.
The revenue from courier services declined from N326.44m to N274.40m for the period under view.
Gross profit declined by 7.1 per cent from N321.23m to N298.40m in the period under view.
Administrative expenses increased by 17.5 per cent from N321.0m to N377.1m within the period under view.
The Managing Director, Crane Securities Limited, Mr Mike Eze, reacting to the development said the current challenges logistic companies were facing was a reflection of total state of the economy.
“If the economy does very well, it will also benefit from it. If the power sector runs very well, production will improve substantially, there will be more goods to deliver from one location to another,” he said.
Eze added, “The industry is not operating in isolation of the rest of the economy; the logistic companies are part of it. They oil the machine of distribution from the point of production to the level of consumption. They play the role of intermediaries from the time the raw materials are sourced to the end production.
“As the middle men, whatever happens at the two ends, they will take a share of it, whether they do well or not. To a large extent, the industry needs re-organisation, but it does not imply they are not contributing to the economy,” he noted.
An independent shareholder, Mr. Peter Bassy, said the inability of the privatised power sector to increase output as envisaged, as a result of issues with gas supply and power distribution, rising inflation cost and decaying infrastructure, continue to pose great challenges to businesses in the country resulting in maintenance and operations cost.
He also added that significant drop in government revenue and distortions in foreign exchange market led to the depreciation of naira in the period under review.
This, according to him, resulted in higher cost for all the company’s international operations.