TSL Limited saw its profit after tax declining to $4,1 million for the year-ended October 31, 2015 due to a reduction in profit from operations.
BY BUSINESS REPORTER
In the same period in 2014, profit after tax for the group was down from $5 million for the year 2014.
Group chairperson Anthony Mandiwanza said notwithstanding the difficult operating environment characterised by local deflationary pressures and weak commodity prices globally, the group has posted a satisfactory set of results.
He said the agricultural season was particularly difficult due to erratic rainfall season. Resultantly, national tobacco production was down 8% during the period to 199 million kg. He said the decrease in volumes coupled with depressed global prices translated into a reduction in national revenues.
Revenue for the company was flat during the period under review from the same period in 2014 at $48,6 million while operating profit was down 8% to $6,8 million from $7,3 million. Mandiwanza said the strong performance registered in the logistics, real estate clusters and new initiatives in the agro trading businesses mitigated the decline in revenues and operating profit in the tobacco related businesses.
“The steady performance by the group in 2015 is, in large measure, attributable to the diversity of its operations. While the agriculture related businesses were adversely impacted by the weather patterns, the logistics and real estate clusters fared well,” he said.
Mandiwanza said in 2016 the company would increase the growing of agro commodities based on offtaker agreements and improve the marketing and distribution reach of the company’s products.
He said the company would build on the progress made particularly in the general cargo and ports businesses whilst ensuring that it retained its leadership position in distribution. Mandiwanza said group would leverage on its relationship with DB Schenker to grow volumes, open new international markets and access world class practices.