COVID-19 to further dampen TSL’s 2020 performance

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  • Business units have been operating at varying capacities during lockdown
  • Agricura has commenced the manufacture and distribution of sanitizers and disinfectants
  • Logistics operations have continued operating, providing services through moving essential cargo

Harare – TSL expects the COVID-19 pandemic to continue affecting the Group’s operations to varying degrees following a not so stable operating environment to date.

In a special trading update the Group said the disruptive effects of the pandemic are expected to continue beyond the 2020 calendar year and will affect its customers, markets and suppliers to varying degrees.

Following the declaration of a national lockdown by the Government of Zimbabwe from 30 March 2020, the Group’s business units have been operating at varying capacities as they qualify as essential services.

Tobacco operations, TSF and Propak have been affected by the six-week delay in the start of the tobacco selling season which commenced on 29 April 2020.

The Group said it has implemented stringent controls to ensure the safety of industry participants as stipulated by the Regulator.

The 2020 season is expected to be affected by the new regulations gazette around decentralization of tobacco purchasing and the pricing of the commodity given global supply chain disruptions.

Agricura, the Group’s agro inputs business has been operating at a reduced capacity, having commenced the manufacture and distribution of sanitizers and disinfectants to service the local market.

Group farming operations have continued to operate although supply chains for support services have been slowed down and tobacco sales have been delayed by the late start to the tobacco selling season.

Bak logistics has been providing essential services in the movement of cargo related primarily to farming activities, provision of food aid and movement of cargo related primarily to farming activities, provision of food aid and movement of essential food and medical supplies.

TSL’s real estate business has received dispensation for the construction of new warehouses which are currently underway.

The Group stated that work is being undertaken to protect the business, preserve shareholder value and take advantage of the opportunities that are emerging.

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