TSL declares final dividend

Audrey Galawu

Tobacco Sales Limited has declared a final dividend of US$0.0015 per share payable in respect of all ordinary shares of the company as of January 30, 2024.

In a cautionary statement, TSL said the dividend is in respect of the financial year ending October 31, 2023 and will be payable in full to all shareholders of the company registered at close of business on April 19, 2024.

“The payment of this dividend will take place on or about 29 April 2024. The share of the Company will be traded cum-dividend on the stock exchange up to the market day of 16 April, 2024 and ex-dividend as from 17 April, 2024,” reads the statement.

Meanwhile, the Group achieved good volume growth across most business units in 2023 compared to the previous year.

Inflation adjusted revenue was up 159% supported by strong volume performance, particularly in the tobacco-related businesses.

Operating profit before fair value adjustments was 89% above prior year.

The ZWL$ cost structure of the business was inflated due to exchange rate volatility whilst foreign currency revenues were recorded at the official exchange rate.

TSL chairman, Anthony Mandiwanza said the operating environment was marked by inflationary pressures, persistent power outages and liquidity challenges in both local and foreign currency.

“The economy has experienced a growing trend in dollarisation, leading to higher proportions of transactions being conducted in US$. Patterns in consumer spending shifted more towards the informal sector.

“Local currency borrowings which had unsustainably high interest rates were paid off early in the year, resulting in a reduction in finance costs by 50% compared to prior year.

“Group borrowings are foreign currency denominated and remain low with adequate interest cover. The Group continued to generate positive operating cash flows and has reinvested in the expansion of operations and payment of dividends to shareholders,” he said.

TSL also reported that the 2022/23 summer cropping season was reasonable across most of the country, with adequate rains.

National tobacco volumes closed at 296 million kgs, 43% ahead of prior year and the national average tobacco price at US$3.03/kg, 1% below prior year price of US$3.06/kg.

The independently grown tobacco crop closed at 7% of the national crop.