The firm’s revenue increased by 106%

Tobacco Sales Floor capacity increased in preparation of the tobacco marketing season

Firm continues to increase rail volumes for a variety of commodities from the ports of Maputo and Beira

Harare - TSL Limited, a tobacco merchant, and agro-industrial focused group increased its revenue by 106% in inflation-adjusted terms during the first quarter ended 31 January 2023 against the prior period. This growth was primarily fueled by firmer volumes in the agri-inputs industry, improved performance in the logistics industry, and increased customer demand for tobacco packaging materials due to the earlier start of the tobacco marketing season.

Providing agricultural supplies, offering logistical services, and offering real estate services primarily to the agriculture industry were the key sources of group revenues in the first quarter. However, during the quarter, there were ongoing problems with the world's supply chains, which led to an increase in the price of agricultural inputs. Electricity woes and both domestic and international currency liquidity shortages affected the firms’ operations and free cash flows.

Agriculture Operations

The Tobacco Sales Floor made substantial preparations for the tobacco marketing season during the quarter. To accommodate higher contracted volumes, the company doubled the capacity of its decentralized floor in Mvurwi and expanded the Harare, Karoi, and Marondera floors.

Propak Hessian increased the production and distribution of tobacco packaging materials as a result of the tobacco marketing season starting earlier than usual. As a result, volumes of both hessian wraps and tobacco paper were much higher than they were the prior year. The local tobacco paper was well received by the market, and quantities significantly increased.

The key product lines of Agricura experienced a solid volume increase over the previous year, with better product accessibility and market penetration. To assure product availability locally, global supply chain interruptions forced the purchase of some products from less-competitive regional markets, which put pressure on margins.

In the farming operations, tobacco, maize, and soya bean crops are growing well and yields are expected to be satisfactory.

Logistics Operations

Since the unit added more business from both current and new customers, handling volumes were much higher than they were the previous year. Due to the Maputo rail service and the start of an extra rail route from Beira, volumes in the International Services Division for the quarter were 46% higher than they were the previous year. The establishment of a dependable rail service is a wise decision that will benefit businesses both domestically and regionally.

Due to worldwide supply chain problems that restricted the movement of fertilizer, the Supply Chain Division's volumes dropped. Distribution volumes for FMCG lagged 9% behind the previous year due to decreased overall market demand.

Due to increased business from major clients, forklift usage in the Handling Equipment Division was 25% more than it was the previous year. Electric forklifts were launched by the Division as part of its service portfolio, which is anticipated to be advantageous to customers in the food and beverage sector.

Avis Budget Group's car rental days were marginally ahead of the prior year as international arrivals continue to improve.

Real estate operations

A satisfactory level of performance was shown in the real estate operation. The Mvurwi sales floor was fully expanded by the business unit, increasing the new warehouse space to 9,000 square meters.

On two of the Group's properties, the company is also building out additional, top-notch warehouse space with a capacity of 23,000 square meters. During the following 12 to 18 months, this move is meant to assist in the expansion of both the logistical and agricultural activities.

On one location, demolition work has moved to an advanced stage, while groundwork has started on the second site. Both sites' redevelopment is anticipated to begin in the second quarter.


In pursuit of the "moving agriculture" strategy, the Group continues to strategically invest to address several important economic concerns. A larger tobacco harvest and what is likely to be a successful marketing season is expected to be beneficial to agricultural businesses. The logistics industry will continue to expand its client base and increase rail volumes for a variety of commodities from the ports of Maputo and Beira. To ensure continued value creation and preservation, the operating environment's challenges will need to be proactively controlled.

Finally, the Tobacco Industry Marketing Board declared that the 2023 tobacco marketing season will begin on March 8, 2023—three weeks earlier than the previous year. According to forecasts, national tobacco volumes are predicted to increase by 5% to 10% from the previous year. The majority of the country has had fair rainfall patterns, which are anticipated to be favorable for the output of summer crops.

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