Trans-Nationwide Express Plc, a logistics and courier service company in Lagos, Nigeria, suffered N79 million loss in the third quarter of 2020.
This disclosure was based on the Q3 2020 financials sent to the Nigerian Stock Exchange on Wednesday.
- Revenue declined by 7.5% Year-on-Year, from N548.3 million as of the corresponding period last year to N507.17 million this year.
- The dip was largely due to a decline in revenue from courier services, which contributed about 54.1% of the total revenue as of Q3, 2020.
- The revenue from courier services declined from N326.44 million to N274.40 million for the period under view.
- On the contrary, other revenue churning segments like Freight income, logistics income, internal mailing income, and warehouse all recorded a positive outlook, as they all grew viz-a-viz last year’s figures.
- Gross profit declined by 7.1% from N321.23 million to N298.40 million in the period under view.
- Administrative expenses increased by 17.5% from N321.0 million to N377.1 million within the period under view.
- Cash received from customers recorded a dip from N542.28 million to N523.07 million, indicating a slip of about 3.5%.
What this means
The pandemic affected several businesses and sectors, the transportation and logistics sectors were not exempted. The loss might have been largely due to the period of economic inactivity, due to embargo on inter-state and international travels.
The high cost of maintenance, coupled with little or no revenue in those periods also played a major part.
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