Logistics operations boost TSL’s Q1 revenues

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  • Tobacco handling volumes were 42%
  • Distribution unit recorded 59% growth
  • General cargo volumes declined by 16%

Harare- TSL’s logistics operations saw growth in volumes in the first quarter ended 31 January 2020.

In a trading update for the review under review, the Group said its tobacco handling volumes were 42% ahead of prior year, an increase attributed to the extended tobacco processing season.

The distribution unit recorded a 59% growth in volumes as new customers were secured while volumes in the ports business increased by 27% as more minerals were handled for existing customers.

Premier Forklifts’ volumes were 17% above prior year due to new non-tobacco related customers who were acquired in the quarter.

However, general cargo volumes handled declined by 16% as warehouses that are traditionally released for agro inputs were still storing tobacco at the start of the quarter.

In addition, volumes in freight forwarding and customs clearing business were depressed as access to foreign currency by customers remains subdued.

Avis, acquired new buses to complement its fleet resulting in rental days improving by 5% while services to foreign travellers remains an important part of the business.

TSL’s occupancies in the real estate operations continued on a downward path, as they decreased marginally by 1% from prior year.

The business has commenced demolition of an outdated 6 000 square meter warehouse to be redeveloped into a 10 000 square meter world class warehouse.

The construction of the new warehouse is expected to be completed by the end of the year.

 According to the group, the logistics division together with the supply of agro-inputs and real estate services largely pushed the Group’s revenues in the quarter under review.

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