LIVINGSTONE MARUFU
Listed agro concern, TSL Limited, is expecting to reap increased volumes from its tobacco related operations in the quarter to April this year.
The tobacco marketing season kicks off on March 30, 2022.
Company secretary Fadzayi Pedzisayi said apart from handling the bulk of tobacco in the country, TSL through its subsidiary, the Tobacco Sales Floor (TSF), various contracting companies use the TSF premises to handle their golden leaf.
In a trading update for the quarter to January 31 2022, Pedzisayi said the TSF was ready for the tobacco marketing season.
“The onset of the tobacco marketing season is expected to improve volumes through the group’s tobacco related operations,” Pedzisayi said.
She said the business was setting up a new decentralised floor in Mvurwi to augment the Harare, Karoi and Marondera floors.
“This is expected to improve tobacco volumes to be handled in the year.
“Propak Hessian, [which is the only licensed packaging company], commenced distribution of tobacco packaging materials during the quarter.
“Volumes of hessian wraps are ahead of prior year whilst tobacco paper is 16% above the same period last year,” Pedzisayi said.
She said revenue for the group grew 72% in the period under review.
Gearing for the quarter, Pedzisayi said, remained low with satisfactory interest cover.
She said the business is adequately stocked for the season.
Volumes at Agricura, however, were depressed against prior year due to the late start of the rainy season which resulted in a shift in volume uptake.
She said tobacco, maize and soya bean crops are growing well and yields are expected to be satisfactory.
The banana plantation recovered from the prior year drought resulting in improved yields.
TSL said the increasing dam water levels are expected to be adequate for the planned winter crop.
The rail initiative from Maputo to Harare positively impacted volumes in the general cargo and ports divisions although shortages of empty containers persisted.
“Distribution volumes are 49% behind last year as most customers’ volumes slowed down,” she said.
Premier’s forklift hours were down 9% in the quarter reviewed due to slowed activity among major clients.
Avis car rental days were 74% ahead of prior year as lockdown restrictions were less stringent in the current year.
Performance in the real estate operation remained satisfactory as space leased out was 10% above prior year due to the contribution of the new warehouse that was under construction in prior year.
TSL said the operating environment was expected to remain difficult.
