Harare – Agro-Industrial, TSL has recorded a 19% increase in revenue to $52,1 million in the full year to October 31, 2018, boosted by a strong performance in the agricultural sector.
In a statement accompanying the group’s preliminary results, TSL limited said operating profit went up by 30% to $9,1 million and profit before tax from operations was 20% above prior year at $7,6 million.
“The agriculture cluster performed strongly. The tobacco-related businesses benefited from the growth in national tobacco volumes. The agro-inputs business had a good year, given the reasonable 2017/18 rainfall season and its early procurement of product to ensure better availability.
“These factors resulted in marked volume growth,” TSL limited said.
The group’s logistics cluster also performed well, registering a significant growth in general cargo and tobacco handled.
“The ports and distribution divisions and distribution divisions continue to be affected by low levels of imports. The cluster has signed on a few significant customers which should see a steady increase in volumes handled over time,” reads part of the Group’s statement.
All the units performed well with Agricura achieving good growth in both sales volumes and expansion of its customer base largely attributable to timely product procurement and availability.
Under its real estate cluster, the company recorded an improvement due to the larger tobacco crop that increased demand for warehousing.
Three new warehouses were constructed and two more could not be completed due to the volatility of pricing in the market. Completion of these warehouses has been deferred to the 2019 financial year.
The company’s assets increased by 6% to $113,2 million in the period under review from the 2017 comparative of $107,2 million.
The company’s total equity increased to about $87 million during the period under review from $82,67 million recorded over the similar 2017 period, mainly due to an improvement of retained earnings.
Net finance cost also rose to $6,7 million in the period under review from $960 462.
TSL declared a final dividend of $4.8 million and $10 million of the proceeds has been set aside for capital projects to be undertaken in the 2019 financial year.
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