TSL sees earnings flat in FY15, lower tobacco deliveries

TSL sees earnings flat in FY15, lower tobacco deliveries

HARARE, March 11 (The Source) – Agro-industrial concern TSL sees its full-year performance remaining flat due to lower tobacco projections and liquidity constraints resulting from weak commodity prices on the global market.

The group which has interests in logistics, property and car hire services recorded a net profit of $4,9 million in the full year to October 2014 from $6,8 million in prior year despite improved tobacco output. Output was up 30 percent to 216,1 million kg last year.

This year, the tobacco season opened last week, later than its traditional mid-February start after poor rains. The Tobacco Industry and Marketing Board (TIMB) projects deliveries of 195 million kg, from 216 million kg last year which earned $684 million..

TSL chief executive officer Washington Matsaira told shareholders and analysts after an annual general meeting that oversupplies of tobacco on the global market by China and Brazil would impact on local prices.

He said the liquidity constraints on the domestic market would also impact on the logistics and trading businesses.

“Our year end performance as we go forward should be line with prior year. The background to that is that the tobacco season has been impacted by weather patterns. The national crop output is expected to be down,” Matsaira said.

He added that the late start to the marketing season would also affect the group’s tobacco business, Tobacco Sales Floor.