TSL records lower after-tax profit

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Losing value ... Bond notes

Diversified concern TSL Ltd reported lower after-tax profit despite a surge in revenues.

The group’s revenue grew 19% to US$48 million for the full year to October, but was weighed down by associate companies.

TSL’s operating profit rose to US$7,3 million in the same period.

Management said the group’s agri-business has experienced a solid revenue and profit performance helped by volumes positively impacted by larger national tobacco crop at 202 million kilogrammes.

At an analysts’ briefing last week, TSL finance director Derek Odoteye said the company had a commanding share of the independent auction market. Management said the group’s hessian business had benefited from a change in business model — competitive pricing and better product distribution.

Agriculture business contributed revenues of US$21,2 million from US$19,3 million. But profits came down from US$2,5 million to US$1,4 million.

Management said it would focus on securing sustainable, long–term marketing arrangements for its farming unit.

TSL’s logistics arm, Bak Logistics’ revenue declined to US$18,1 million from US$21,4 million owing to a decline in distribution volumes, low consumer demand and forex shortages.
Profit also declined to US$1,2 million from US$2,4 million in the prior year.

Management said focus in the current financial year would be on containing costs in the divisions, broadening the customer base and leveraging on international relationships.
Hunyani Holdings, a company in which the group holds a 40% equity stake, was incorporated into a new entity, Nampak Zimbabwe comprising of Canauld Metal Box and Mega Pak, a development that saw the paper and packaging company’s contribution to TSL falling below prior year.

Turning to the tobacco operations, management said production during the period under review was 50% up to 3,6 million kg.

The real estate business had also registered growth driven by strong demand for warehousing space with third-party tenancy improving by 8% to 33 %.

The group announced plans to establish an industrial park at its property near the Boka Tobacco Auction floor. The park, according to management, would be completed in five years.

Going forward, management said the company would grow logistics, agriculture, real estate and trading divisions.

In the agricultural division, the group will focus on export and value addition projects. — Staff Writer.

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