TSL Limited

TSL Limited HY2023 Analyst Briefing Presentation

By Published On: July 7th, 2023Categories: Corporate announcement, Earnings

Operating Environment

Economic Environment

  • Operating environment remained difficult.
  • Effects of global and local inflation witnessed – including agricultural inputs.
  • Local currency continued depreciation against USD – widening gap between official and alternative market rates – Pricing challenges.
  • Economy increasingly dollarized.
  • Erratic power supply – increased cost of doing business.

Agricultural Sector

  • Reasonable summer cropping season across most of the country – generally adequate rains.
  • Tobacco marketing season commenced 8 March 2023, 6 weeks earlier than prior year.
  • National tobacco crop sold by end of April 2023, 35% ahead of prior year at 134 million kgs.
  • Average tobacco price remained firm at US$3 per kg, marginally ahead of prior year.
  • National tobacco crop volumes to set new record high.

Performance Overview

Group Performance

  • Directors advise caution in interpretation of Group financial statements.
    • Numerous exchange rates prevalent in the marketplace-inflating ZWL cost structure
    • Group’s foreign currency revenues recorded at official exchange rate.
  • Strong volumes growth across all businesses.
  • Tobacco-related businesses have done particularly well.
  • Enhanced profitability attributable to focus on executing the Group Strategy:
    • Investment in expanding capacity,
    • Utilizing technology,
    • Improving operating efficiencies,
    • Securing new business and
    • Deployment of capital for value.

Financial Position

  • Financial position remains sound.
  • Positive operating cashflows generated – reinvested in expansion of operations and dividend payments to shareholders.
  • Foreign minority shareholder in Agricura successfully bought out – Group now owns 100%.

Business Overview

Agri – Inputs

  • Strong volume growth was recorded in most product lines.
  • Business sufficiently stocked for summer season.
  • Introduction of new product lines improved volume performance.
  • Hessian volumes 71% ahead of prior year – adequately stocked to meet increased demand from larger tobacco crop.
  • Market share continues to increase.
  • Some hessian was exported into the region – first time in many years.
  • Tobacco paper volumes 59% ahead of prior year – positive response from market to locally produced paper from recently installed paper production line.


  • New banana plantation went into production – 87% volume growth.
  • Additional 25 Ha of new bananas planted – export market.
  • Satisfactory seed and commercial maize and soya bean yields.
  • Satisfactory tobacco crop yields and acceptable prices achieved to date.

Market Places

  • Significant increase in volumes – focus on decentralization and serving contractors.
  • Volumes handled on contract up 44% and on independent auction up 63%.
  • Recently completed Mvurwi Floor performed reasonably well.
  • Earlier start of tobacco selling season by 6 weeks.

End to End Logistics

  • Distribution volumes up 51% – increased volumes from existing customer base.
  • International Services volumes up 40% – increased use of rail from Maputo.
  • Some lithium and sulphur handled for customers on rail prior to SI 213/2022 banning export of unprocessed lithium.
  • Freight forwarding and bond store volumes buoyed by sulphur business.
  • Forklift hire hours up 19% – increased business from key customers.
  • Tobacco handling volumes up significantly and transport volumes up 39% – new business model supporting customers throughout the value chain.
  • Rental days up 13% – increased international travellers.


  • Voids improved to 12% from 37% – increased demand for warehousing space.
  • 9,000 square meter Mvurwi warehouse completed in time for tobacco marketing season.
  • Demolition of dated warehouse in a prime location in Harare completed.
  • Construction of new world class 15,000 square meter warehouse to commence in H2.

Outlook & Prospects

  • The Group continues to pursue several strategic initiatives aligned to the “Moving Agriculture” strategy that are expected to have far-reaching benefits for the market-place.
  • The difficulties in the operating environment are expected to persist and the business will focus on continued sustainable value creation and preservation.

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TSL Limited HY 2023 analyst briefing presentation

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