DIVERSIFIED concern TSL Limited recorded a 45,25% increase in profit after tax to US$5,59 million for its half year ended April 30, 2026, driven by strong demand across its agricultural, logistics and tobacco-related operations.
Profit after tax increased from the prior year’s comparative figure of US$3,85 million.
Revenue from continuing operations increased by 33% to US$26,2 million during the review period compared to the prior year, driven by strong demand across all business units, underpinned by a favourable agricultural season and improved economic activity, TSL chairperson Anthony Mandiwanza said in a statement accompanying the firm’s half-year report ended April 30, 2026.
“Earnings before interest, taxation and depreciation grew by 29% to US$9,7 million, while profit before tax rose by 39% to US$7,3 million. Profit growth outpaced revenue growth, benefiting from lower finance charges and operational efficiencies realised through the group’s cost optimisation measures,” he said.
Reporting on revenue performance, TSL’s Tobacco Sales Floor (Private) Limited delivered a strong result during the period, supported by a favourable rainfall season, ongoing automation initiatives, and expanded floor space capacity.
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As a result, contract tobacco volumes handled across all floors increased by 87% to 36 million kilogrammes, while auction volumes rose by 31% to 5 million kilogrammes, compared to the prior year.
Under the group’s end-to-end logistics cluster, the segment recorded revenue growth compared to the prior year, reflecting increased activity across its key service lines.
“Equipment handling contributed 42% of revenue while handling and warehousing contributed approximately 40%. Forklift hours increased by 11% and forklift utilisation improved by 17% supported by an extended tobacco processing season and higher demand from the fast-moving consumer goods (FMCG) sector,” Mandiwanza said.
“The business continues to transition to electric forklifts, with 41 acquired to date. General cargo handling volumes increased by 33%, while storage volumes rose by 42%, supported by improved demand from existing and new customers.”
He said port full container lifts increased by 76%, supported by improved volumes from the FMCG sector and small to medium enterprises.
For the group’s infrastructure operations, occupancy levels remained stable at 94%, while net property yields improved from 10% to 12% following the disposal of low-yielding assets.
“Total lettable space decreased by 3% to 211 400 square metres following property disposals undertaken in the prior year,” Mandiwanza said.
“The group successfully completed and commissioned a modern 4 567 square metre warehouse facility at the Hubert Fox Complex in Harare. The project was delivered on schedule and handed over to the tenant at the end of April 2026.
“Construction of another 3 433 square metre warehouse at the same complex has already commenced, with completion targeted for October 2026.”
TSL’s half-year performance strengthened its balance sheet, as total assets increased by 1% during the review period to US$100,6 million.
“The gearing ratio increased marginally from 12% to 13% to support various expansion initiatives within the group, while shareholders’ equity grew by 4% to US$71,3 million,” Mandiwanza said.
“The group continues to generate positive operating cash flow and closed the period under review with cash balances of US$5 million.”
He said the group was well positioned to leverage opportunities across its diversified portfolio and deliver sustainable value to shareholders.
