Tranex PLC, one of the major logistics companies in Nigeria said its net profit fell to NGN35 million in the third quarter of the year. This is a major fall bearing in mind that it net profit for last year was NGN50,9 million posted last year.
Gross revenue for the period also fall to NGN602 million compared to NGN798 million recorded last year. The report shows that the company is taking serious steps to cut down its cost of sales as well. Cost of sales for the period fell to NGN267 million. Last year, cost of sales was NGN310 million.
Tranex must have joined many companies who have downsized. Administrative expenses was down from NGN408 million last year to NGN294 million.
Tranex will need to watch its debt profile. For a company with a total asset of NGN571 million, there is about NGN251 million is the total credit that the company is being owed by its customers.