HARARE, June 12 (The Source) – Agro-industrial concern TSL Limited’s after tax profit for the half-year to April has narrowed to $1,7 million from $3,5 million in prior year due to declining revenue and rising finance costs, the company reported on Friday.
The company attributed declining revenue to delays in the opening of this year’s tobacco marketing season. TSL runs Tobacco Sales Floor, the country largest auction floor by volumes.
Revenue declined to $24,3 million from $25,3 million. Finance costs rose to $1,1 million from $890,000.
“The tobacco selling season officially commenced three weeks later than in previous years and the trading season experienced a slow start due to lower deliveries and price concerns. As a result, serious tobacco trading commenced in earnest six weeks later than in previous years,” the company said.
“Following the delay … revenues from the tobacco and related businesses are expected to be higher in the second half of the financial year. This is notwithstanding that there is a projected smaller national crop.”
In 2014, total flue tobacco amounted to 216 million kilograms earning the country $684 million.
This year Zimbabwe projects lower output at around 195 million kg. The group’s logistics business Bak Logistics recorded a marginal growth in revenue during the period under review driven by increased volumes in cargo business, the company said.
The real estate portfolio and car rental services business also recorded modest growth.