Trans-Nationwide Express Plc has said it is targeting to achieve N1.185 billion turnover for the fourth quarter of 2021. In its Q4 earning forecast obtained from the Nigerian Exchange Limited (NGX), the oil firm also projected to rake in N67.355 million as profit before tax and N46.475 million as profit after tax during the stipulated period.
Its projection for cost of sales stood at N482.743 million. The company however showed signs of profitability in the first quarter of 2021 with a profit after tax of N.475 million during the first quarter ended March 31, 2021 as against a profit of N9.591 million reported in 2020. Revenue dropped by 5.91 per cent to N179.726 million from N191.021 million in 2020.
In spite of revenue decline cost of sales and admin expenses continued to rise. Cost of sales stood at N91.487 million from N82.918 million in 2020, representing an increase of 10.33 per cent while administrative expenses equally grew by 2.32 per cent to N100.801 million from N98.918 million recorded the previous year.
The logistics and courier service company returned to loss position on increased cost pressure during the half year of 2021 with a loss after tax of N48.663 million from loss of N78.045 million in 2020. Revenue grew to N333.987 million from N317.312 million in 2020, accounting for 5.25 per cent growth. Cost of sales rose by 24.47 per cent to N174.026 million in 2021 from N139.808 in 2020 while administrative expenses stood at N255.418 million in 2021 from N255.218 million in 2020. According to the Managing Director, Crane Securities Limited, Mr. Mike Eze, the current challenges logistic companies are facing is a reflection of total the 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. “The industry is not operating in isolation of the rest of the economy; the logistic companies are part of it.