Executive Summary
Trans-Nationwide Express Plc reported continued operating weakness for the nine-month period ended September 30, 2025, as subdued demand and persistent cost pressures weighed on financial performance. Revenue declined sharply amid softer logistics volumes, reflecting macroeconomic challenges, intensified competitive pressures and weakening consumer spending. Revenue fell 41% YoY to ₦127.9 million in 9M 2025 (vs. ₦217.8 million in 9M 2024), translating to lower operating leverage and a sustained negative bottom-line. Administrative expenses remained elevated despite reduced business scale, constraining earnings recovery momentum. Loss Before Tax widened to ₦82.1 million (vs. ₦73.8 million loss in 2024), driven by higher cost-to-income ratio and limited ancillary income streams. The Company recorded a Loss After Tax of ₦82.5 million (vs. ₦50.2 million loss in prior year). Balance sheet position weakened further, with equity declining sharply to ₦132.6 million from ₦301.5 million YoY due to accumulated losses, while liabilities increased, reflecting reliance on payables to fund working capital. Overall, TRANEX continues to face industry-specific and macroeconomic headwinds, underscoring the need for strategic restructuring, market expansion initiatives and operational efficiency enhancement.
Financial Highlights – Statement of Profit or Loss
₦'000 Q3 2025 9M 2025 9M 2024
Revenue 31,689 127,919 217,833
Direct Cost (10,725) (40,476) (73,545)
Gross Profit 20,965 87,443 144,288
Other Income – 1,520 19,523
Admin Expenses (46,018) (170,880) (237,069)
Finance Cost (95) (187) (536)
Profit Before Tax (25,149) (82,104) (73,793)
Income Tax (126) (411) 23,614
Profit/(Loss) After Tax (25,274) (82,514) (50,180)
EPS (₦)** (0.05) (0.18) (0.11)
Key Takeaways
• Revenue contraction continues to pressure margins
• Limited ancillary income weakens profitability
• Operating expenses remain structurally high relative to turnover
Balance Sheet Summary
₦'000 Sept 2025 Dec 2024 Sept 2024
Total Assets 645,414 607,856 651,085
Total Equity 132,554 215,067 301,476
Total Liabilities 512,860 392,789 349,609
Balance Sheet Interpretation
• Equity erosion driven by accumulated losses
• Liabilities increased, highlighting working-capital pressure
• Cash position modest at ₦79.9m; receivables elevated (₦208.4m), signaling collection challenges
Key Ratios & Performance Indicators
Metric 9M 2025
Revenue Growth -41% YoY
Gross Margin 68%
Operating Margin Neg
PAT Growth N/M (loss widened)
Equity -56% YoY
Strategic Insights
Strengths
• Strong gross margin despite volume pressure (indicative of cost control in direct operations)
• Stable asset base; no major borrowings strain
• Long-standing brand in logistics and courier sector
Weaknesses
• Operating losses and equity erosion
• High overhead relative to revenue capacity
• Weak cash-flow generation
• High trade receivables — potential liquidity stress
Outlook
TRANEX requires strategic restructuring to restore competitiveness and achieve sustainable profitability. Key focus areas include:
• Strengthening revenue through e-commerce logistics partnerships
• Tightening cost control and overhead efficiency
• Enhancing receivables recovery to improve liquidity
• Technology investment to optimize operations and customer service
• Potential capital injection to support scaling efforts
Analyst View
“TRANEX continues to operate under significant margin and liquidity pressure as demand softness and elevated cost structure constrain earnings normalization. While gross margin improvements are notable, sustained losses and equity depletion highlight the urgency for operational recalibration, balance-sheet strengthening and commercial re-positioning. Strategic partnerships, digital expansion and receivables optimization remain critical inflection levers.”
Conclusion
Trans-Nationwide Express Plc delivered another challenging period in 9M 2025, characterized by declining revenue, negative earnings and weakened equity. While the business maintains a solid legacy footprint in logistics, transformational actions will be required to restore profitability and drive long-term value creation.
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Disclaimer
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