Unifreight Africa Limited Reports 135% Increase in Q3 Volumes, Sets Sights on Fleet Expansion and Cross-Border Contracts

Published On: December 11, 2023Company: Unifreight Africa Limited (UNIF.zw)
What led to the increase in Unifreight Africa Limited's Q3 volumes and how does the company plan to sustain this growth?
The main driver of the 135% increase in Q3 volumes was the company's investment in capacity in Q1 2023. Unifreight intends to sustain this growth by further increasing their fleet, exploring more lucrative cross-border contracts, and investing in smaller trucks to serve the local market at lower costs per KM.

Summary

  • Unifreight Africa Limited reported a 135% increase in Q3 volumes from 50,000t in 2022 to 120,000t in 2023.
  • The significant increase is mainly attributed to investment in capacity during Q1 2023, when the company funded 100 x FAW28-380FT paired with AFRIT Taut-liners.
  • Despite increasing their assets, the company was able to contain costs, with only a marginal 2% increase in expenditure year-on-year.
  • This resulted in Unifreight moving into a profit-making position for EBITDA in Q3 2023, from a loss position in 2022.
  • The company is planning to further increase their fleet and explore more lucrative cross-border contracts. They are also looking to invest in smaller trucks to serve the local market at lower running costs per KM.
  • About macro-economic factors, the company mentioned difficulties due to lack of affordable finance. Also, added that the multicurrency system was extended to 2030 which will facilitate longer tender loans.
  • Also touched upon the issue of forced arbitrage in formal retail where goods were required to be priced in both USD and ZWL, but the exchange rate controlled by the RBZ resulted in cheaper prices in the informal market.
  • The company praised the Government’s recent Monetary Policy Committee intervention that promotes the use of bank cards through exemption from IMTT tax.
  • The company assures that they are on track to meet forecast profits for FY 2023.

Useful links

About Unifreight Africa Limited (UNIF.zw)

Unifreight Africa Limited is a transport holding company in Zimbabwe, offering services in logistics, freight and passenger services to clients in sub-Saharan Africa. The company was re-named after the successful acquisition of Pioneer Corporation Africa Unifreight Africa Limited services include inter-city freight, distribution of general goods and an international courier service. Its brands include Skynet Worldwide Express, Swift and Bulwark. The engineering division operates in two sectors; maintenance of its Unifreight fleet and sales and procurement of parts for Yutong busses, aswell as heavy haulage and abnormal freight transport. Skynet Worldwide Express offers international and domestic courier and airfreight services. Unifreight Africa Limited owns a fleet of vehicles which are available on a contract agreement or for once-off hire. Unifreight Africa Limited is listed on the Zimbabwe Stock Exchange

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