ZIMBABWE Stock Exchange-listed diversified company, TSL Limited (TSL) wants to intensively invest in its core business sectors of agriculture and logistics after realising significant revenue gains during the third quarter ended July 31,2024.
Quarterly group revenue rose 13 percent from last year’s levels, underpinned by strong volume expansion in the logistics division as it plans channelling its cash reserves into growth areas.
US dollar-denominated revenue accounted for 83 percent of the group’s total revenue during the period under review.
TSL’s flagship business in tobacco handling showed resilience. It processed 52,5 million kilograms of tobacco, slightly ahead of the previous year’s 52 million kilograms.
As TSL continues to expand its logistics network and strengthen its agricultural operations, it is likely to remain a key player in Zimbabwe’s economic landscape.
“The group generated positive operating cash flows and reinvested in the expansion of operations,” the company said in a trading update.
The firm acknowledges the challenges that remain, including ongoing inflationary pressures and the potential for continued weather-related disruptions.
“A significant crystallization of US$ costs was noted in the quarter resulting in US$ inflation,” the company stated.
TSL’s agricultural division, which includes Tobacco Sales Floor (TSF), Propak Hessian, Agricura, and farming operations, performed relatively well despite the national decline in tobacco volumes and adverse weather conditions.
TSL’s flagship business in tobacco handling showed resilience. It processed 52,5 million kilograms of tobacco, slightly ahead of the previous year’s 52 million kilograms.
Contracted tobacco represented 84 percent of the volume, a 13 percent increase year-on-year, while quarterly volumes surged 23 percent. This was impressive given the overall 22 percent drop in national tobacco volumes, signalling TSL’s ability to capture more market share in a shrinking market
Propak Hessian, which supplies packaging materials, faced a tough period with volumes down 27 percent as merchants reduced product uptake due to the national decline in crop size. In contrast, tobacco paper volumes surged 39 percent during the quarter, driven by an increase in market share.
Agricura was severely impacted by the El Niño-induced drought, with depressed demand across most product lines.
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