Nigeria’s FedEx licensee, Red Star Express has disclosed a N5.30 billion ($32.8 million) revenue turnover for the end of fiscal year, March 2013, recording a 5 percent rise from the N5.03 billion ($31.16 million) gained the previous year.

The courier company noted attributed the higher returns to expansions in different market sectors, particularly logistics and warehousing, adding that a growing customer patronage of local companies may have also impacted its revenue returns.

The company’s Deputy General Manager, Finance and Planning, Vincent Ihemenwa, added that the courier service’s sub business units such as Red Star Logistics and Red Star Support Services are all raking in higher turnovers which will further strengthen its capital base for future business developments.

“Our subsidiaries are turning to strong growth platforms that would increase our turnover and higher shareholder value going forward,” Mr Ihemenwa told Business Day in a report.

The courier servicing industry in Nigeria has being pulled back by several challenges such as the new media and IT surge which has reduced the number of mails or documents previously transported by Logistics Company by providing an easier and convenient platform online.

Indigenous firms also suffer from lack of funding compared to the bigger multinationals, as well as having to deal with issues of low patronage from customers who give preferences to more established brands.

Despite these challenges, Red Star Express still records significant yearly profits with its pretax profit for this year hitting N544.96 million ($3.37 million) and net profit standing at N304.53 million ($1.9 million).

Analysts however suggest that the firm leverages on FedEx’s global network – the world’s largest express transportation company – to ensure a sustained progressive business.