TSL topline jumps 24%

STAFF WRITER
TSL Limited, a diversified agribusiness group, says it delivered a 24% increase in revenue to US$45,6 million for the financial year ended October 2025, up from US$36,9 million in the prior year, buoyed by a strong 2024–2025 tobacco season and broad-based volume growth across all business units.
Riding on a record national tobacco crop and tighter cost controls, the group translated higher activity levels into stronger revenues, improved profitability and a healthier balance sheet.
Group chief executive Mr Dereck Odoteye said the 2025 performance was closely linked to a historic season for Zimbabwe’s tobacco industry, which provided a solid foundation for growth.
“From the tobacco industry perspective, the industry achieved a record — the highest in the country — of 255 million kilogrammes at the end of last month, up 53% on the previous year, and as an industry, we generated US$1,2 billion,” he said.
Mr Odoteye noted that while the average selling price softened marginally to US$3,32 per kilogramme — about 2% lower than the prior year — the sharp increase in volumes more than compensated for the price decline, resulting in favourable outcomes across the value chain.
“Resultantly, TSL delivered a 24% increase in revenue to US$45,6 million, up from US$36,9 million in the prior year, supported by a strong 2024–2025 tobacco season and broad-based volume growth across all business units,” he said.
“What you will see is that we generated more cash in the current year. We reduced our financial risk. We strengthened our balance sheet. And, more importantly, we rewarded our shareholders.”
For the year under review, EBITDA surged 70% to US$19,3 million from US$11,4 million, while operating profit climbed 80% to US$16,2 million. Profit after tax from continuing operations rose sharply by 84% to US$10,5 million, compared with US$5,7 million in the prior year.
Mr Odoteye said the improved profitability was driven by higher revenues from increased volumes, complemented by sustained cost optimisation initiatives implemented over the past two years.
“Additional support came from fair value gains and property disposals, with US$2,5 million in after-tax fair value gains recognised during the year, alongside US$1,1 million generated from the disposal of two properties,” he said.
The group also made notable progress in de-risking its balance sheet. Interest cover improved by 54% to 10,35 times, while gearing declined from 18% to 13%.
“Debt levels fell by 21% to US$8,5 million, and cash balances increased fivefold to US$8,6 million at year-end,” said Mr Odoteye.
Operational momentum was evident across individual business units. In the agricultural segment, volumes grew across most product lines despite late rains and heightened competition.
“In agricultural trading, fungicide volumes surged 167% following the introduction of new products, fertiliser volumes increased 137%, and animal health remedy volumes jumped 218%, reflecting the impact of a new animal health plant commissioned in November 2024,” he said.
However, insecticide and herbicide volumes declined by 34% and 35%, respectively, prompting branch rationalisation, product mix adjustments and reduced funding of low-margin generic products.
The packaging business, Propak Hessian, recorded a 26% increase in sales volumes, benefiting from higher national tobacco output. Tobacco paper volumes, however, declined by 6% overall, with strong local demand partly offset by lower export volumes.
In tobacco-related services, the auctioneering and marketing business, Tobacco Sales Floor (TSM), handled volumes increased 56% to a record 81 million kilogrammes, up from 52 million kilogrammes previously.