Web Analytics
TSL achieves good volume growth despite challengin...

TSL achieves good volume growth despite challenging trading environment

Audrey Galawu

TSL Limited has revealed that the group achieved good volume growth across most business units compared to the previous year despite challenging trading conditions.

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

In its 2023 annual report, TSL revealed that the farming operations produced a superior quality of tobacco and achieved improved yields and price per kg on tobacco compared to the previous year.

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

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

Favourable yields were also achieved on soya beans and commercial maize although wheat production declined due to electricity availability challenges.

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

TSL chairman, Anthony Mandiwanza said 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.

“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 dollarization, leading to higher proportions of transactions being conducted in US$. Patterns in consumer spending shifted more towards the informal sector.

“The Group continues to prioritise enhancement of shareholder value and sustainable growth. Group borrowings are foreign currency denominated and remain low with adequate interest cover. The Group reinvested in the expansion of operations and payment of dividends to shareholders,” he said.

Meanwhile, TSL directors declared a final dividend of US$0.0015 per share payable in respect of all ordinary shares of the Company.

This 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 April 29, 2024.

 

 

Leave Comments

Top