TSL profit up 521% in FY22
BUSINESS REPORTER
Listed ago-business concern, TSL Limited has delivered a ZWL$14.15bn profit in 2022, reflecting a 521% increase from ZWL$2.28bn reported in the previous year.
In a statement accompanying the company’s financial results, TSL chairman Anthony Mandiwanza said the group achieved good volume growth across most business units against the comparative year notwithstanding the challenging trading conditions.
Revenue for the group stood at ZWL$17.7bn in the reviewed period from ZWL$14.1bn reported in the previous year, underpinned by strong volume performance.
Finance costs increased by 162% in the period under review largely attributable to interest rate hikes by the monetary authorities.
The Reserve Bank of Zimbabwe hiked interest rates to 200% in 2022. However, the interest rates were cut to 140% this year.
Mandiwanza also said the gearing level remained low with adequate interest cover after the reduction of ZWL$ loan exposures that had unsustainably high-interest rates.
He said TSL’s property portfolio was valued at ZWL$39bn. The US$ value of the group properties increased by 9% from the previous year.
TSL’s tobacco-related services unit, Tobacco Sales Floor, handled 23.1 m kg of tobacco during 2022 on the back of a smaller crop and a shrinking independent grown crop against 24.3 m kg in the prior year, a 5% decline.
The business successfully opened a new floor in Mvurwi. This complements the business’ decentralised operations in Karoi and Marondera which were opened in 2021.
TSF held the largest market share of 71% in the independent auction segment.
Propak hessian volumes were 15% below the prior year owing to a reduction in the independent auction segment.
The new tobacco paper manufacturing line, which was commissioned in the prior year produced a high-quality, competitively priced paper that the market responded to positively.
Paper volumes consequently grew by 24%.
Agricultural trading Agricura’s volume performance for the year was mixed.
Tobacco yields were 14% lower than the prior year due to a hail strike, however, improved tobacco quality resulted in very pleasing prices being achieved.
He said the introduction of a reliable rail service between Harare and Maputo in August 2021 by Bak Logistics in partnership with DP World and Unitrans increased volumes in the Ports division by 117%.
“This is expected to grow as the business commenced a rail service for exporters during the last quarter of the financial year. The business unit 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 fertiliser volumes,” Mandiwanza said.
