TSL decentralises floors as contracted volumes grow

Spread This News

By Alois Vinga

ZIMBABWE Stock Exchange (ZSE) listed TSL Limited continues to decentralise floors in a bid to cater for increased contracted volumes.

Presenting a trading update for the first quarter that ended January 31 2024 TSL company secretary, Fadzayi Pedzisayi said as part of preparations for the tobacco selling season floors decentralization was top of the priorities.

“Tobacco Sales Floor undertook extensive preparations for the tobacco marketing season. The business increased the capacity of its decentralized floors in Marondera and Karoi to cater for increased contracted volumes. Zimbabwe Mercantile Exchange (ZMX) operations are anticipated to grow in the year,” she said.

Despite obtaining economic headwinds, TSL managed to record significant growth across its units.

“Propak hessian volumes were 21% below the prior year at 724,322 from 912,259, a gap that is expected to narrow in the second quarter as the tobacco season commences.

“The effect of the El Nino weather phenomenon on the national tobacco crop size is, however, anticipated to reduce hessian volumes. Tobacco paper volumes were 116% ahead of the prior year as the market continued to respond positively to the locally coated paper,” said Pedzisayi.

The company started exporting tobacco paper into Zambia in the quarter. Agricura’s volumes, during the quarter, were depressed compared to the prior year reflecting the impact of the El Nino-induced dry spell.

The Logistics business recorded improved volume growth in the quarter due to the new business model, which supports the customer throughout the value chain.

The rail service from both Maputo and Beira continued to operate and performance to date was satisfactory. Clearing and forwarding volumes remained strong due to improved volumes from existing customers.

Premier Forklift hours at 124,112 were 10% ahead of the prior year of 112,991 hours as the business continues to grow its volumes from both new and existing clients. Forklift sales were significantly ahead of the prior year.

Avis’ rental days of 2,284 were 4% below the prior year (2,374 days). Additions to the fleet are planned in the second quarter of the financial year.

“The Group will continue to pursue key strategic initiatives in line with its “moving agriculture” strategy. The afore-mentioned challenges in the operating environment and the impact of the lower-than-normal rainfall on some business units will be proactively managed to ensure shareholder value is continuously created and preserved,” added Pedzisayi.