(Unaudited Financial Statements for the Year Ended 31st December 2024)
Key Financial Metrics
- Revenue: ₦262.97 million (2024) vs. ₦536.82 million (2023)
- Gross Profit: ₦181.54 million (2024) vs. ₦355.23 million (2023)
- Other Income: ₦37.77 million (2024) vs. ₦92.44 million (2023)
- Administrative Expenses: ₦313.20 million (2024) vs. ₦398.18 million (2023)
- Profit/(Loss) Before Tax: ₦(94.67) million (2024) vs. ₦48.30 million (2023)
- Net Profit/(Loss) After Tax: ₦(95.14) million (2024) vs. ₦32.60 million (2023)
- Earnings Per Share (EPS): (₦0.20) (2024) vs. ₦0.10 (2023)
Trans-Nationwide Express Plc experienced a significant revenue decline of 51%, contributing to increased losses. The downturn was driven by weakened courier and logistics revenues, exacerbating administrative cost burdens.
Operational Highlights & Cost Management
- Direct Cost: ₦81.43 million (2024) vs. ₦181.59 million (2023)
- Logistics Expense: ₦20.70 million (2024) vs. Nil (2023)
- Mail Bag & Mass Mailing Expenses: ₦14.18 million (2024) vs. ₦14.28 million (2023)
- Personnel Costs: ₦177.18 million (2024) vs. ₦188.17 million (2023)
- Depreciation: ₦26.72 million (2024) vs. ₦28.14 million (2023)
- Financial Costs: ₦780,000 (2024) vs. ₦1.19 million (2023)
The company reduced its administrative expenses from ₦398.18 million to ₦313.20 million, reflecting ongoing cost optimization efforts. However, continued overhead burdens and declining revenues further pressured profitability.
Capital Expenditures & Shareholder Returns
- Total Assets: ₦720.38 million (2024) vs. ₦719.91 million (2023)
- Total Liabilities: ₦400.04 million (2024) vs. ₦334.31 million (2023)
- Shareholder Equity Declined: ₦320.34 million (2024) vs. ₦385.60 million (2023)
- Dividend Paid: ₦9.96 million (2024) vs. ₦9.38 million (2023)
- Retained Earnings: ₦(39.37) million (2024) vs. ₦65.26 million (2023)
Shareholder equity dropped by 17%, mainly due to increased liabilities and negative retained earnings, reinforcing the need for profit recovery measures in 2025.
Management Commentary
Key Challenges:
- Declining courier and logistics revenue, impacting overall financial performance.
- Rising administrative costs, requiring further optimization.
- Macroeconomic challenges, including inflation and operational constraints.
Despite these difficulties, the company reported positive operating cash flow, indicating resilience and the ability to navigate financial restructuring.
Strategic Initiatives:
- Efficiency improvements to lower overhead and streamline processes.
- Targeting new revenue streams through increased e-commerce and freight services.
- Operational restructuring to boost cost-effectiveness and reduce financial strain.
Outlook for 2025
Management remains cautiously optimistic about stabilization and recovery, with a focus on:
- Cost-cutting strategies to restore profitability.
- Investment in e-commerce logistics to capture growing demand.
- Operational restructuring to enhance efficiency and cost control.
However, the company must address ongoing cost pressures and revenue declines to ensure a turnaround in financial performance.
Shareholding Structure & Market Information
- Issued Share Capital: 498.15 million shares
- Major Shareholders:
- MWML Nominees Ltd (26.8%)
- Saham Unitrust Insurance Nigeria Ltd (21.3%)
- Adebayo Thomas Bandele (7.5%)
- Free Float: 21.3%
- Stock Price as of 31st Dec 2024: ₦1.23 per share
Investor confidence remains challenged, with share price stability depending on financial recovery and strategic restructuring.
Conclusion
Trans-Nationwide Express Plc faced financial difficulties in 2024, driven by declining revenue and rising losses. To regain profitability in 2025, the company must implement aggressive efficiency measures and explore new revenue opportunities through e-commerce expansion and logistics innovations.
