Harare – Agro-Industrial group TSL Limited has recorded a 267 percent increase in profit after tax to $12.9 million for the year ended 31 October 2018, from $4.8 million achieved in prior comparative period in 2017 on the back of strong performance from the agriculture cluster.
Revenue for the period increased by 19 percent to $52.1 million from $43.8 million achieved in the prior year, while operating profit increased by 30 percent to $9.1 million.
In a statement accompanying its results, TSL Limited highlighted positive changes in all units headlined by agriculture operations and also positive changes in the logistics and real estate operations.
“The Agriculture cluster performed strongly. The tobacco related business benefited from the growth in national tobacco volumes. The agro-inputs business had a good year given the reasonable 2017/18 rainfall season and its early procurement of product to ensure better availability,” TSL said.
Along with the growth trends, TSL said that the logistics cluster performed well registering significant volume growth in general cargo and tobacco handled as the company introduced value-add services particularly for fertiliser importers.
Likewise, its vehicle rental unit, Avis, recorded growth in car hires to foreign travellers which has become a good source of foreign currency for the Group, while Premier Forklifts benefited from an extended processing season due to the larger tobacco crop.
“The real estate cluster’s performance was satisfactory with minimal voids. Three new warehouses were constructed and brought into use at the Vorstermans Complex,” TSL said.
The Group however, highlighted that volatility of pricing in the market impacted on its planned project upgrades which were intended to start in the second half of the year under review. To this effect, the projects have been deferred to the 2019 financial year.
On the outlook, the Group said its renewed purpose is to “move agriculture” and will to this effect focus on bringing significant efficiencies to the country’s agriculture supply chain.
“We will work closely with producers and processors of agro-commodities to ensure that they can get the requisite inputs, commodity exchange services and end-to-end logistics solutions at a price and a manner that allows them to compete locally and regional,” TSL said.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment.