TSL profit up 163pct in H1

TSL profit up 163pct in H1

HARARE, June 23 (The Source) – Agro-industrial group TSL on Friday reported a 163 percent increase in net income to $1,58 million in the six months to April 30, driven by an improved performance by the agro chemicals business and higher grain production.

Revenue rose 14 percent to $23,6 million from 20,7 million recorded in the same period last year while operating profit was 73 percent higher at $2,8 million.

“The overall volume growth by 165 percent over prior year reflects the fruition of initiatives to sign new clients, in particular, merchants coupled with the 10-day earlier start to the tobacco selling season which contributed an additional 20 percent to volumes,” the company said.

Tobacco sales floor remain a market leader in the auctioning, commanding over 60 percent market share,the company said.

The logistics operations saw a decline in profit to $28,222 from $598,724 previously, weighed down by Bak Logistics which recorded a rather disappointing performance owing to a slowdown in economic activity which negatively impacted volumes across its key divisions. However, the freight forwarding and customs clearance business continued to perform well.

In the real estate operations, revenue declined by 22,8 percent to 2,13 million while profit fell 52,7 percent to 1 million on the back of higher level of voids, but the company said they have since been filled by new tenants.

The company owns 30 percent and 16,53 percent shareholding in Cut Rag Processors and Nampak Zimbabwe respectively.The two are currently available for sale and the company said it has received interest from potential buyers.

Gearing ratio improved to 15 percent from 20 percent on reduced borrowing.

The company expects the momentum that started in the first half to continue into the second half, despite an expected slowdown in seasonal businesses in the later part of the year.

The company did not declare a dividend.