• Unifreight Africa has acquired an effective 86.67% stake in Cheetah Express Logistics, Zimbabwe’s sole authorised FedEx Global Service Participant, in a US$2.08 million transaction awaiting Competition and Tariff Commission approval
• The group delivered a strong Q1 2026 performance, with sales of ZWG211.0 million, 79% ahead of budget, EBITDA of ZWG17.3 million against a budgeted ZWG2.5 million, and profit before tax of ZWG3.8 million versus a budgeted loss.
• Operational efficiency improved sharply, with 63,173 tonnes moved, 22% ahead of budget, using 266 trucks against a planned 290, while the first 40 FAW 380FT truck tractors were delivered for the Beira Corridor growth strategy

Harare- Unifreight Africa Limited has acquired an effective 86.67% shareholding in Cheetah Express Logistics, the sole authorised FedEx Global Service Participant in Zimbabwe, in a transaction valued at US$2.08 million that is currently awaiting final approval from the Competition and Tariff Commission. The acquisition, announced alongside the company's first quarter 2026 trading update, gives Unifreight immediate entry into the express courier segment and, upon completion, will make the group the controlling shareholder of the only company in Zimbabwe with authorised FedEx global service participation rights.

This comes after a quarter in which Unifreight delivered group sales of ZWG211.0 million, 79% ahead of budget, with gross profit of ZWG53.8 million running 108% above budget and EBITDA of ZWG17.3 million against a budgeted figure of ZWG2.5 million. Operational profit before tax came in at ZWG3.8 million compared to a budgeted loss of ZWG11.4 million. The group moved 63,173 tonnes in Q1, 22% ahead of budget, covering 2.26 million kilometres with an average fleet of 266 trucks against a budgeted fleet of 290, delivering volume performance ahead of plan with 8% fewer trucks than expected.

The significance of the Cheetah Express Logistics acquisition extends considerably beyond its US$2.08 million transaction value. FedEx Global Service Participation is not a licence that can be replicated by a competitor. It is an exclusive relationship that makes Cheetah, and by extension Unifreight upon completion, the single point of entry for FedEx's global delivery network in Zimbabwe. Every parcel, document, and express shipment moving between Zimbabwe and FedEx's global network must flow through this entity.

For a company whose existing business is built around bulk road freight on Southern African corridors, this acquisition represents a fundamental diversification of business model rather than a simple capacity expansion. Bulk freight is asset-heavy, volume-driven, and margin-constrained by fuel and maintenance costs. Express courier is less asset-intensive, more service-driven, and carries structurally higher margin potential because customers are paying for speed and reliability rather than competing primarily on price per tonne.

The acquisition is being funded through US$210,000 in internally generated cash and US$1.87 million drawn from existing overdraft facilities with two local financial institutions at a fixed rate of 10.5% per annum, repayable over three years. The board acknowledges that gearing has been deliberately allowed to rise to fund both the Cheetah acquisition and the fleet expansion programme, describing this as a measured and calculated capital allocation decision. The three-year repayment structure provides cost certainty while the integration period delivers earnings contribution from the new business.

The Q1 volume performance deserves attention on its own terms. Moving 63,173 tonnes with 266 trucks against a budget of 290 trucks means Unifreight achieved 22% better-than-budgeted volume with 8% less equipment than planned. This is the output of better fleet utilisation, stronger route discipline, and more effective use of available capacity,  operational improvements that reduce the asset intensity of revenue generation and improve return on capital employed.

The cost environment, however, remained demanding. Fuel litres consumed were broadly in line with budget at 878,134 litres, but the average fuel price of ZWG39.35 was 64% above budget, pushing total fuel cost to ZWG34.6 million. Repairs and maintenance ran 110% above budget, while  subcontractor costs were 97% above budget.

Total support service costs were 56% above budget.

Despite these headwinds, revenue growth outpaced cost growth, producing a gross margin of 25% against a budgeted 22% and an EBITDA margin of 8% against a budgeted 2%.

The fuel cost overrun of 64% above budget was the most consequential cost disclosure in the update. At 878,134 litres consumed, a 64% price overrun represents a very substantial absolute cost variance that the revenue performance absorbed. The question going into Q2 is whether fuel prices stabilise, decline, or continue rising under the Middle East geopolitical pressures that have driven energy costs higher globally. The answer to that question will largely determine whether the gross margin of 25% is sustainable or whether it compresses as fuel prices remain elevated.

Alongside the Cheetah acquisition, the first 40 FAW 380FT truck tractors paired with Afrit trailers have been delivered, representing the first tranche of the fleet replacement and expansion programme previously disclosed. Management has concluded from extensive testing that the FAW 380FT is the ideal specification for the Beira Corridor route, supported by operating data showing a lower cost per kilometre than alternative units tested and fuel efficiency of approximately 2.34 kilometres per litre.

The Beira Corridor, connecting Zimbabwe to the Port of Beira in Mozambique, is Unifreight's identified key cross-border growth route. The combination of a proven truck specification, a tested route, and incremental capacity arriving into a business that has already demonstrated it can exceed volume budgets with fewer vehicles than planned is a credible operational setup for continued growth. The new fleet arrives into demonstrated demand rather than speculative capacity building.

The board's outlook for the balance of 2026 is framed around three converging advantages: a stronger fleet productivity profile from the new FAW units, improved route economics on the Beira Corridor, and a more diversified business mix through the Cheetah express logistics contribution. While fuel, maintenance, and the cost of funding remain active areas of management focus, the Q1 result demonstrates that the group's growth strategy is converting scale into earnings at a pace that exceeded even its own budget assumptions.

Unifreight entered 2026 as a bulk road freight company with growth ambitions. It is leaving Q1 as a company with a credible claim to being Zimbabwe's most complete end-to-end logistics provider, with a presence in international express delivery that no competitor currently holds.

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