malvernmugadzikwa
Business Writer
TSL Limited says it will double floor space for its Mvurwi warehouse facility to 9,000 sqm as the group seeks to consolidate its decentralised tobacco management operations.
The group whose interests span across sectors, including real estate, agriculture, logistics, and Services, operates its tobacco-related businesses through Tobacco Sales Floor and Propak Hessian Services.
Derek Odoteye, the group’s chief executive officer, said under the company’s real estate business, it successfully completed the new 4,500 sqm warehouse facility in Mvurwi, aiding TSF decentralisation of tobacco contract management operations.
“The Mvurwi facility will be expanded by another 4,500 sqm in the second half of the year to bring the total floor space to 9,000 sqm,” he said during a virtual analyst briefing for financials for the interim period to June 28, 2022. Odoteye said that the group will commit US$3 million towards capital expenditure in the second half of the year as the group pursues its moving agriculture strategy. He said that these strategic investments are expected to enhance group earnings, shareholder returns, and the Group’s long-term value proposition and strengthen the Group’s balance sheet.
Odoteye said under the group’s property portfolio, the group kept its existing facility in Harare deliberately vacant for sizable warehousing redevelopment commencing in later part of year. He said voids consequently were up to 37 percent during the interim period.
“Strategic initiatives being undertaken to improve operating efficiencies and enhance long-term returns,” he said.
The country’s marketing season commenced on March 30, 2022 which was one week earlier
than prior year.
Odoteye said that TSL had during the period under review handled 6.5 million kgs of tobacco which was 12 percent below prior year. He said that the new floor opened in Mvurwi added the decentralised floors in Karoi and Marondera. During the six months period, Hessian volumes were down 28 percent due to the slower start of season and change in merchant distribution patterns.
“Volumes are expected to improve in the third quarter as business enters the peak of marketing season,” he said. The group’s revenue at $3 billion during the period was five percent above prior year and inflation-adjusted profit before tax for the period is five percent below the comparative period.
Online Reporter