Unifreight on the rebound

Enacy Mapakame

Transport and logistics firm, Unifreight Africa Limited, experienced a rebound in performance during the third quarter to September 30, 2020 on improved business efficiencies.

According to the group, the third quarter, showed a dramatic come – back with cumulative revenue on budget and 5 percent ahead of prior year.

Net profit was 36 percent ahead of budget in real terms.

The group has initiated survival strategies such as cost containment measures and improved operating efficiencies.

“All of our KPIs are moving in the right direction, with improving yields, improving fuel consumption levels which can be attributed to new fleet, decreasing labour cost per tonne, and overall improvement in cost controls, which gives us a great deal of faith that we are on the right track and will end the year on a high note ahead of budget,” said Unifreight in a statement accompanying the group’s financial results for the half-year to June 30, 2020.

For the half-year period, the group recorded depressed performance versus forecasted figures due to effects of Covid-19 which saw some businesses completely shut down in April and May. The country implemented a lockdown effective March 30, 2020.

As a result, volumes for the half-year period went down 22 percent compared to same period last year.

“Given that some of our customers were shut down completely and many others were below 50 percent of normal trading volume, I think we can be very grateful that we came out relatively unscathed in comparison and were able to remain profitable,” said Unifreight.

In terms of financial performance, revenue for the period rose 11 percent to $383 million compared to $343 million recorded in the comparable prior year period.

Profit for the period eased 35 percent to $5 million from $7,7 million reported during the same period last year.

At 4,73 cents, basic earnings per share reduced 34 percent from comparable prior year period’s 7,23 cents.

Total assets remained almost flat at $1,1 billion.

Like any other sectors, the general performance of the economy will have a bearing on the business.

Currently, there is uncertainty due to the effects of Covid-19, with no clear picture as to when the pandemic is likely to end across the globe. No dividend was declared.