• Propak hessian volumes down 15%

  • Tobacco handling volumes grew by 31%

  • Premier Forklift volumes were 5% ahead

Harare – Zimbabwe Stock Exchange listed agro-industrial group, TSL Limited posted mixed volume performance across all its operating business units for the third quarter ended 31 July 2022.

In a trading update, the Group said the operations remained profitable during the quarter.

Under TSL’s agricultural operations, the Tobacco Sales Floor (TSF) handled 23.1 million kilograms of tobacco against 24.3 million kilograms in the previous year, reflecting a 5% decline.

“The strategy to serve the much larger contracted tobacco market is yielding fruit, with 62% of the total volumes handled coming from this segment. The business successfully opened a new floor in Mvurwi and the volumes from there were pleasing. This complements the business’ decentralized operations in Karoi, Marondera and Harare,” the Group said.

Propak hessian volumes were 15% below the prior year owing to a reduced national crop and a change in the timing of collection of packaging materials by merchants, however, this gap is expected to narrow in the fourth quarter.

The Group’s Agricura’s performance for the quarter was mixed as whilst some product lines performed better than the previous year on the back of product availability and competitive pricing, other product lines were not available as a result of inordinately long lead times as a result of global supply chain disruptions.

“In the farming operations, better yields were achieved compared to the previous year on tobacco, seed maize, soya bean and commercial maize. The improved water and weather conditions resulted in banana plantation production growing by 50%,” TSL said.

Under logistics operations, tobacco handling volumes grew by 31% due to the new floor opened in Mvurwi coupled with the provision of handling services to new tobacco clients.

General cargo volumes were significantly ahead of the prior year due to improved fertilizer volumes, while the FMCG business continued to be affected by global supply chain challenges and volumes were depressed.

Premier Forklift volumes were 5% ahead of the prior year due to additional business from new clients while forklift sales also significantly increased in the quarter as more clients resumed capital expenditure which was previously deferred.

The Group’s Avis rental days were materially ahead of the prior year as lockdown restrictions continued easing.

Regarding the Group’s real estate operations, certain properties were deliberately kept vacant for redevelopment in the later part of the financial year, and consequently, the level of voids remains satisfactory.

“Additional warehousing space is currently under construction in response to existing demand and is expected to be added to the property portfolio in the coming financial year,” the Group said.

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