HARARE – TSL Limited has announced the discontinuation of two non-core businesses, with the latest being its car rental operations.
The company said this is part of a strategic move to streamline its portfolio and focus on core business activities. This decision aligns with the group’s broader strategy to reallocate resources toward more strategic and profitable ventures.
The farming operations were officially wound up on 31 October 2024, while the car rental business is set to cease operations by 31 March 2025.
TSL highlighted that it is progressing with its acquisition of a 51.43% stake in Nampak Zimbabwe, a move aimed at enhancing shareholder value. The company confirmed that the deal “remains on track for completion in Q3 2025, pending regulatory approvals.”
In its first quarter trading update, the group revenue was 9% below the comparative period in the prior year, though profitability was significantly improved due to cost containment measures.
Tobacco volumes are projected to surpass the previous year’s figures, with 11 million kilograms already sold by 14 March 2025, compared to 15 million kilograms during the same period in the 2023/24 season.
The delayed onset of the 2024/25 summer cropping season, marked by a dry first half, significantly impacted agriculture-based operations. However, with improved rainfall patterns in January and February, the company expects a stronger second quarter.
Progak, the group’s packaging division, reported volumes in line with budget, with adequate hessian and paper stocks to meet market demands. Agricura, however, saw an 8% decline in Q1 revenue due to reduced crop chemical sales, attributed to farmers’ cautious approach amid delayed rains. The commissioning of a new animal health plant in November 2024 positively impacted revenue from animal remedies, which more than doubled compared to the previous year.
The logistics division experienced a 34% decline in tobacco handling volumes and an 11% drop in forklift hire hours, largely due to the reduced 2024 tobacco crop. However, general cargo storage volumes surged by 66%, driven by the delayed distribution of agricultural inputs. FMCG handling and distribution volumes also saw growth, thanks to increased business from existing customers.
Port operations were adversely affected by unrest in Mozambique, leading to a 66% decline in full container fills and a 10% drop in empty container fills. The group expects this to reverse in the coming quarters. Meanwhile, the bonded warehouse facility reported increased activity following the renewal of its license in Q4 2024.
The group’s real estate operations saw a 7% increase in occupancies, with satisfactory returns.
Despite the challenging operating environment, the group remains committed to pursuing key strategic initiatives aimed at enhancing shareholder value.
