TSL expands warehousing facilities
RYAN CHIGOCHE
Listed agro-business concern, TSL Limited says it is expanding its warehousing facilities this year to improve operating efficiency and generate more income.
It comes after TSL completed a 4500 square metre warehouse facility in Mvurwi district, Mashonaland Central Province, in the first quarter of this year.
“The business successfully completed the construction of a new warehouse facility to aid Tobacco Sales Floor in expanding its decentralised tobacco contract management operations. This will be expanded by another 4 500 square metre warehouse in the second half of the year,” TSL Limited board chairman, Anthony Mandiwanza, said.
He said the company has also deliberately kept an existing facility in Harare vacant, in preparation for construction of a sizable warehousing development in the later part of the year.
“These strategic investments are being undertaken to improve operating efficiencies and enhance long-term returns,” Mandiwanza said.
In its financial results for the six months to April 30, 2022, TSL Limited’s profit declined 19% to ZWL$741m from ZWL$918m reported in the prior comparable period.
Revenue for the group increased 5% to ZWL$3bn from ZWL$2.9bn in the same period the previous year.
The TSF handled 6.5 million kg in the period under review, which reflected a 12% decline compared to the prior comparative period.
Volumes at Propak were 28% below prior year due to the slow start of the tobacco marketing season coupled with tobacco merchants adjusting the timing of the distribution of hessian to their farmers.
The Agricura unit was affected by the broad worldwide supply chain issues that prevented some raw materials and finished goods from being imported when needed had a detrimental effect on the firm.
Going forward as a measure to contain costs the group said they are also going to stringent measures to invest in technology manufacturing and exploiting operational efficiencies.
Mandiwanza said they will also continue to pursue the “moving agriculture” strategy and invest accordingly.
TSL also predicted that national tobacco volumes will be between 10% – 15% lower than the initial forecasts and the 211m kg purchased in the previous year.
