• PAT soared to ZWL14 billion from ZWL2 billion
  • This is despite recording mixed performance across key sectors
  • Well-performing sectors anchored poor-performing sectors to post growth

Harare- Diversified ZSE-listed entity, TSL Limited Zimbabwe has achieved a record 520% surge in profit after tax for the full year ended 31 October 2022 underpinned by its diversified portfolio strategy. 

Profit After tax soared to ZWL14 billion from ZWL2 billion while revenue was up by 26%.

Improved performance came despite operating in a turmoil environment infested by recurrent drought spells, inflationary pressures and volatile multiple exchange rates, leading to mixed performances in the Company’s operating units. To offset losses, profit-making operations, particularly logistics anchored loss-making operations especially related to tobacco services. 

“The operating environment remained complex characterised by significant inflationary pressure, currency instability and prolonged dry spells after some crops had been planted,” said the Company’s chairperson Anthony Mandiwanza in a statement accompanying the FY2022 financials.

The Tobacco Sales Floor segment recorded a 5% decline in tobacco volumes with tobacco yields 24% down compared to FY2021 despite having the largest market share in the independent auction segment (71%) and achieving the highest seasonal average price of US$3.24 (up from US$2.86 recorded last year) against the national average price of US$3.06.

Propak hessian volumes were 15% below the prior year owing to a reduction in the independent auction segment. 

However, losses in tobacco-related operations were offset by improved yields in wheat, commercial maize and banana operations. The improved water and weather conditions resulted in banana plantation production growing by 27%. 

Overall, losses in the agricultural operations were offset by logistics operations which recorded growth across all units. Volumes in the ports division increased by 117% due to the introduction of a reliable rail service between Harare and Maputo in August 2021 by Bak Logistics in partnership with DP World and Unitrans. The business unit has started handling sulphur coming through the rail into Zimbabwe for export into Zambia via road. 

General cargo volumes were significantly ahead of the prior year due to improved fertilizer volumes while the transport division volumes were 9% ahead of the prior year due to an increase in volumes for tobacco bales transportation from decentralised tobacco floors. 

Premier Forklift volumes were 4% ahead of the prior year due to additional business from new clients. Mandiwanza added that Forklift sales also significantly increased in the year as more clients resumed capital expenditure

Vehicle rental’s arm, Avis rentals’ days were 71% ahead of the prior year as lockdown restrictions eased resulting in increased international arrivals.

Resultantly, the property portfolio of the Company was valued at ZWL39 billion by Dawn Property Consultants, which Mandiwanza said is a significant increase on the conservation director’s valuation adopted in prior years in the absence of ZWL inputs. The USD value of the Group properties increased by 9% from last year.

Total assets more than tripled total liabilities while current assets doubled current liabilities meaning the Company can service its obligations without liquidation uncertainties. 

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