Volume growth in most business units boosts TSL revenue in Q3 2021

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  • Revenue improved by 9%
  • Bak Logistics recorded good volume growth
  • Avis’ rental days up 121%
  • Tobacco volumes down 30%

TSL Limited’s inflation adjusted revenue grew by 9% in the third quarter ended 31 July 2021 driven by good volume growth across most of its business units.

In a trading update, Company secretary James Muchando said during the quarter, Agricura achieved strong volume growth across most product lines due to increased market share, stock availability, and attractive pricing particularly on locally manufactured products.

The Group’s Bak Logistics recorded good volume growth over the prior year with tobacco handling up 28%, distribution up 36%, ports up 285%, and transport up 117%.

“This growth was attributable to new clients being signed up and the commencement of transport services from decentralized tobacco floors,” Muchando said.

Propak hessian volumes were 21% ahead of the prior year.

Handling volumes at Premier Forklifts improved by 28% in the quarter while forklift sales remained depressed as customers slowed down on capital projects.

Avis’ rental days for the period under review were up 121% owing to lighter lockdown restrictions and commencement of international travel when compared with the prior year.  

In the Group’s Real Estate Operations, occupancies remained satisfactory with void levels comparable to the same period last year.

However, storage volumes in FMCG and General cargo were below the comparative period, due to global supply chain disruptions which resulted in products being moved directly to consumers.

Tobacco volumes were 30% lower than that recorded in the same quarter last year.

“Due to the earlier start to the tobacco trading season, most of these volumes were delivered in the first half of the year, and consequently the volumes in this quarter are 30% lower, reflecting this timing difference,” Muchando said.

The Group continues to pursue its “moving agriculture” strategy in a difficult operating environment and to invest accordingly to create and preserve shareholder value.

Muchando said the availability of foreign currency and appropriately priced financing will assist in taking advantage of the existing growth opportunities.

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