TSL profit jumps 43 percent to US$4.3 million

Antony Mandiwanza, TSL chairman

Rutendo Mazhindu - ZimNow Reporter

TSL Limited recorded a 43 percent increase in profit from continuing operations to US$4.3 million for the half year ended 30 April 2025, compared to US$2.99 million in the same period last year, driven by revenue growth and cost containment initiatives.

TSL chairman Mr Anthony Mandiwanza said the company posted an 8 percent growth in revenue to US$19.67 million, up from US$18.19 million recorded in the prior period.

“The growth in revenue was driven by improved volumes across most business units and the continued implementation of cost optimisation measures,” he said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 33 percent to US$7.5 million from US$5.66 million in 2024, while operating profit rose by 34 percent to US$6.16 million.

Headline earnings per share rose by 18 percent to 0.98 US cents, compared to 0.83 US cents in the prior year.

The Group's financial position remained strong, with total assets increasing by 4 percent to US$93.48 million and shareholders’ equity rising by 7 percent to US$65.63 million.

Propak’s hessian volumes were 28 percent ahead of the previous year, while tobacco paper volumes rose 6 percent.

The company said adequate hessian and paper stocks were in place to support the anticipated increase in tobacco output.

Agricura recorded a 244 percent growth in animal health remedies volumes following the successful commissioning of a new plant in November 2024. Fungicide and insecticide volumes also grew by 235 percent and 3 percent respectively.

Mr Mandiwanza said cumulative national tobacco sales reached 123 million kilograms by the end of April 2025, up 0.74 percent from the same period in 2024, with an average price of US$3.40 per kilogram.

The 2025 national crop is projected to range between 35 and 45 percent higher than the 232 million kilograms achieved in 2024.

Contract tobacco volumes were 8 percent above prior year while independent volumes rose 18 percent.

The Group said 81 percent of total volumes handled came from the contract segment, reflecting the success of its strategy to serve the larger contracted tobacco market.

Capacity utilisation at the bonded warehouse improved to 70 percent, offsetting the impact of Unilever’s exit from the local market.

However, port volumes declined due to unrest in Mozambique, with full container lifts falling 76 percent and empty container lifts 18 percent below prior year.

TSL said available warehouse space increased by 9 percent to 217,000 square metres following the completion of a new 15,000 square metre facility. Void levels remained low at 6 percent.

The Board approved the disposal of three non-core properties, which will partly fund the acquisition of a 51.43 percent equity stake in Nampak Zimbabwe Limited valued at US$25 million. The transaction will be financed through internal resources and bridging finance.

“The Group resolved not to declare an interim dividend for the six months ended 30 April 2025 in order to preserve cash resources for the anticipated acquisition,” said Mr Mandiwanza.

Mr Mandiwanza said the Group will continue to focus on enhancing revenue, protecting margins and managing finance costs.

“Efforts to streamline operations, optimise property portfolios and improve capital efficiency will remain a priority as the Group positions itself for long term value creation,” he said.