Trans-Nationwide Express Plc has reported a loss for the first quarter (Q1) ended March 31, 2025, as declining revenue, escalating direct costs and administrative expenses undermined profitability.
The logistics and courier company posted a net loss of N15.02 million, compared to a loss of N30.48 million in Q1 2024, reflecting continued operational challenges despite a narrower deficit.
Revenue and Gross Profit
The company generated N19.17 million in revenue for March 2025, representing a sharp year-on-year decline from N66.71 million in the same period of 2024 and N49.50 million reported in the comparative March 2025 period (likely a cumulative or projected figure).
The slump in revenue highlights continued demand weakness and market competitiveness in Nigeria’s logistics sector.
Direct costs surged to N23.76 million, up from N23.62 million in Q1 2024, despite lower revenue, pushing gross profit into negative territory at N4.58 million, compared to a positive N43.10 million last year.
This negative gross margin indicates inefficiencies in cost management relative to declining topline performance.
Operating and Financing Expenses
Administrative expenses were recorded at N11.32 million, a significant reduction from N80.80 million in Q1 2024. The year-over-year decline signals a stronger cost control mechanism.
However, when compared to the cumulative March 2025 figure of N45.03 million, it reflects seasonal cost variations or staggered reporting of operating activities.
Finance costs remain negligible at N9,000, down from N269,000 in the prior year, indicating reduced debt servicing burden.
The company’s loss before taxation stood at N14.94 million, compared to N51.43 million (March 2025 cumulative) and N30.33 million in Q1 2024. After a modest tax expense of N75,000, net loss settled at N15.02 million.
Earnings Per Share
Earnings per share (EPS) declined to -0.03, reflecting negative earnings available to shareholders and continued capital erosion. This compares unfavorably with EPS of -0.10 recorded in the same quarter of 2024.
Balance Sheet Position
Total Assets and Liquidity
Total assets declined to N595.90 million as of March 2025, down from N714.32 million in March 2024 and N607.86 million in December 2024. The company’s asset base continues to shrink, indicating a gradual depletion of resources amid sustained operational losses.
Non-current assets declined by 11.3% year-on-year to N228.27 million, driven by reductions in Property, Plant & Equipment (N151.26 million) and Intangible Assets (N5.66 million).
Current assets fell to N367.62 million, from N456.95 million in Q1 2024, although slightly higher than the December 2024 figure of N363.67 million. Notably:
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Trade receivables remain significant at N176.06 million, indicating substantial unpaid invoices.
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Cash and cash equivalents dropped to N49.54 million, down from N60.62 million at year-end, signaling weaker liquidity coverage.
Equity Position
The company’s retained earnings deteriorated to a negative N156.69 million, worsening from N105.27 million in December 2024. As a result, total shareholders’ equity fell to N163.64 million, compared to N355.12 million a year ago.
The erosion in equity poses a potential risk to investor confidence and the company’s long-term solvency if losses persist.
Liabilities
Short-Term and Long-Term Liabilities
Current liabilities increased to N432.25 million, up from N357.49 million in Q1 2024. This includes:
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Trade and other payables at N406.99 million, which constitute 94% of total liabilities.
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Current tax liabilities remained stable at N25.26 million.
There are no long-term liabilities reported in March 2025, compared to N1.70 million in deferred tax liabilities last year.
Outlook
Trans-Nationwide Express Plc faces material headwinds from declining revenue, negative gross profit margins, and shrinking shareholder equity. While administrative cost controls show improvement, the company must urgently address revenue generation, recover receivables and optimize operations to return to profitability.
Without significant operational turnaround or capital infusion, the current trajectory raises sustainability concerns in a highly competitive logistics market.
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