- 13% increase in group revenue for Q3, largely driven by logistics unit
- 83% of the company's revenue was collected in US dollars
- Avis rental days dropped by 24% due to increased competition
Harare- TSL Limited has achieved a commendable performance in the third quarter ended 31 July 2024, with group revenue rising by 13% year-over-year.
This growth was largely driven by increased volumes in the logistics sector, with 83% of revenue generated in US dollars.
“The Group generated positive operating cashflows and reinvested in the expansion of operations,” said the group.
“ However, a significant crystallization of US$ costs was noted in the quarter resulting in US$ inflation.”
In the Agriculture segment, the Tobacco Sales Floor (TSF) processed 52.5 million kilograms of tobacco, up from 52 million kilograms last year while contracted tobacco represented 84% of this volume, marking a 13% increase with tobacco volumes surged by 23%, reflecting strong demand.
However, Propak Hessian volumes fell by 27% year-on-year due to decreased demand from tobacco merchants linked to a smaller national crop but tobacco paper volumes rose by 39%, benefiting from a larger market share.
Agricura faced challenges from El Niño-related weather impacts, leading to reduced demand across most product lines.
Nonetheless, improvements in farming operations yielded better results for tobacco and soybeans compared to last year with banana plantation volumes increasing by 13%, supported by a new irrigation system, despite ongoing weather issues.
The logistics segment despite anchoring revenue showed mixed results: tobacco handling volumes fell by 37%, and general cargo volumes declined as key clients cut back on space and services.
Conversely, tobacco handled from decentralized auction floors rose by 21%, indicating a shift in handling dynamics while distribution handling volumes increased by 47%, and transport operations grew by 8%, demonstrating operational resilience.
The Ports business excelled, growing by 42% due to strong strategic partnerships while clearing volumes rose by 21%, although the forwarding business saw a decline.
Premier Forklift volumes increased by 2% due to more business from existing clients, while Avis rental days dropped by 24% due to increased competition.
In real estate, TSL made significant strides, reducing voids from 14% last year to 10%. This improvement was linked to heightened demand for warehouse space and the availability of previously under-construction properties.
“The Group will continue to pursue its key strategic initiatives inline with its “moving agriculture” strategy.
“Challenges in the operating environment will be proactively managed to ensure shareholder value is continuously created and preserved,” said the group.
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