Unifreight resilient

Business Reporter
TRANSPORT logistics group, Unifreight Africa Limited says alignment in business as well as consistency in fleet availability is bearing fruit as the group reported profit for the third quarter to September 30, 2019, of $12,8 million, which was 966 percent ahead of the same period in the prior year.

Unifreight also attributed the growth to good customer care service which also saw profitability surpassing budget by $10 million.

“We are pleased to report a profit of $12,8 million for Q3 2019, which is $10,1 million ahead of budget and $11,6 million ahead of the previous year.

“The positive out-turn is attributed to good customer care and service, consistency in fleet availability and alignment in business operations,” said Unifreight in a trading update.

Revenue for the period under review was also in the positive, jumping 229 percent to $46,2 million which was 130 percent ahead of budget.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was 449 percent to $16,4 million which was also $14,6 million or 263 percent ahead of budget.

Despite the positive earnings performance, Unifreight also experienced a challenging operating environment like other businesses operating in Zimbabwe.

Said Unifreight: “Revenue generation continues to be positive from all the group’s brands. The results for Q3 2019 are still good, despite a deteriorating business climate in the country

“Foreign currency shortages have had a negative impact on the business as operational expenses continue to increase month on month due to the hyperinflationary economic environment.”

The economy has been battling inflationary pressures, foreign currency shortages, erratic power supplies and low disposable incomes. Such economic headwinds have increased costs for businesses.

For Unifreight, fuel and repairs and maintenance costs remained within budget.

However, fuel availability remains a challenge as the shortages persist. Repair and maintenance costs also continue to spike due to the fluctuating foreign currency exchange rate which has a direct impact on procurement of spares.

Despite the challenges, management is upbeat its survival strategies will continue to keep the company in business and ahead of competition.

Key focus going forward will be on growing revenues, ensure right pricing and maintain costs within threshold.

“We will continue to focus on growing volumes on the Low Margin (LTL) in the Swift business, which is yielding the much needed positive results. We will also continue to grow the specialised dedicated service through our Bulwark Brand. Skynet continues to expand its footprint on the international courier service,” said Unifreight.

Unifreight did not propose an interim dividend for the third quarter under review.