daniel chigunwe
Business Reporter
Transport and logistics firm Unifreight Africa reported a 9 percent year-on-year increase in total revenue for the third quarter of 2024, though this fell short of its ambitious budget by 15 percent.
Group chief executive Richard Clarke said in a trading update that despite economic pressures, the company achieved a net profit margin of 3.6 percent, which further emphasised the ability to navigate excalating cost and focus on high-margin business opportunities.
“A significant contributor to this performance was the Full Truck Load (FTL) segment, which expanded to represent 22 percent of our revenue mix.
“Additionally, cross-border operations contributed 23 percent of total revenue and continue to be a vital growth area,” he said.
He noted that these increases were balanced by the Less Than Load (LTL) segment, which maintained a 48 percent share.
Clarke said market competition and currency fluctuations continued to present challenges.
However, the company’s targeted focus on high dollar per kilometre courier clients and cross-border efficiency enabled the company to sustain solid margins.
During the period under review, Swift volumes were notably 14 percent above the previous year, reaching 111 616 tonnes, with yield above budget, indicating stronger utilisation and pricing strategies.
Clarke said this robust volume growth, combined with high operational standards, has been pivotal in securing new contracts and maintaining customer satisfaction levels.
During the quarter under review, the 4PL Broking division, now fully operational and consistently managing substantial freight volumes, has become a dynamic part of Unifreight Africa’s growth strategy.
“In Q3, we successfully leveraged our expansive logistics network to establish new high-volume contracts, securing agreements to move over 30,000 tonnes of goods from Beira, Mozambique, into Zambia and Zimbabwe.
“This large-scale operation has enabled us to expand our client base significantly, forming strategic partnerships with suppliers and consolidating our position as a preferred logistics provider for various industries,” he said.
He added that the 4PL unit has strengthened its regional market presence and driven additional monthly profitability.
“As this division continues to develop, we expect it to be a major revenue stream supporting Unifreight’s goals of revenue diversification,” said Clarke.
He noted that efficiency improvements remain a central focus to our Q3 performance, noting that fleet optimisation has allowed the company to reach an impressive fuel efficiency average of 2,30 km/L.
Clarke said by prioritising the most fuel-efficient driving in operations, the company is able to control operating costs and improve bottom-line results.
“We also made strides in fleet reliability and maintenance cost reduction. With an overall fleet availability rate of 92 percent, we maintained a high service standard that has been key to our customer contract retention efforts,” he said.
Clarke said the Q3 period was marked by significant successes in customer acquisition, driven by a series of targeted initiatives from our sales team.
He said through an intensive door-to-door blitz, the company unlocked new accounts in various sectors, including banking, healthcare, and agriculture.
“This strategic expansion was aimed at capturing market share from competitors and securing clients seeking more reliable logistics partners,” he said.
He said it remains the company’s commitment to expand its fleet and has purchased an additional 20 FAW 380FT trucks, which have been performing exceptionally well.
“As part of our fuel management strategy, we have focused on improving fuel monitoring across our fleet. This quarter, fuel consumption management and fleet tracking tools were upgraded to allow us to monitor fuel usage more accurately, providing detailed insights that help us minimise fuel costs.
“This approach has not only lowered our fuel expenses but also contributed to more predictable and controlled operational costs,” said Clarke.
He noted that the sales pipeline remains robust, with multiple new contracts and customer engagements slated for the coming quarters.
Bongani Ndlovu