Online Reporter
Sikhulekelani Moyo, [email protected]
AMALGAMATED agriculture-listed company, TSL Limited, says a process to acquire 51,4 percent shareholding in Nampak Zimbabwe Limited from Nampak Southern Africa Holdings Limited is underway as part of its strategic expansion drive.
In a statement accompanying the company’s financial results for the year ended 31 October 2024, board chairman Mr Antony
Mandiwanza said several key strategic initiatives were being pursued and should be concluded before the end of the current financial year.
He said the group is well positioned to capitalise on emerging opportunities as part of its growth strategy with considerable efforts on restructuring the balance sheet to preserve value.
Mr Mandiwanza said the preservation of shareholder value will be maintained as the cornerstone of the group’s operations and strategic initiatives.
“As part of the group’s expansion drive in strategically aligned businesses, TSL Limited is engaged in the acquisition of 51,43 percent shareholding in Nampak Zimbabwe Limited from Nampak Southern Africa Holdings Limited,” said Mr Mandiwanza.
“Processes to finalise and execute the sale and purchase agreement are at an advanced stage.”
To preserve cash for the impending acquisition of the shareholding, Mr Mandiwanza said the board of directors has decided to forego a dividend for the financial year that ended, 31 October 2024.
He said the board believes that the value uplift from the acquisition will significantly benefit shareholders soon.
Meanwhile, Mr Mandiwanza said the group revenue from continuing operations, at US$36,9 million was one percent ahead of the prior year with most units, except Agricura, achieving budgeted volumes.
He said volumes for Agricura were adversely affected by the projection of a drought in the first half of the 2023/24 agricultural season.
The group’s profitability was adversely affected by the dollarisation of most operating expenses, which was worsened by an emerging US dollar inflation in the economy.
“Profit before tax from continuing operations closed the year at US$7,1 million compared to US$9,8 million in the previous year,” said Mr Mandiwanza.
“Resultantly, interest cover dropped while headline earnings per share dropped from US$2,48 cents to US$0,69 cents.
“Adjustments have already been made in the 2025 financial year to address the dollarisation of all operating expenses.”
He said the group’s financial position remains strong and continues to grow despite the drop in profitability in the financial year.
The group generated positive cash flows from its operations. Gearing levels remain acceptable and will be managed downwards from the group’s cash flows in the coming year. TSL’s agricultural trading division was the worst affected by the El Nino-induced drought.
However, Mr Mandiwanza said that despite these challenges, the company increased its gross profit ratio from 38 percent to 49 percent, driven by a high-value product mix and strategic procurement.
— @SikhulekelaniM1.
