UNIFREIGHT Africa has made a strong start to 2026, with first-quarter revenue and profit exceeding budget as the logistics group advances its fleet expansion programme and pursues a key acquisition in the courier sector.
The company reported sales of ZiG211 million for the quarter, 79 percent above budget, while gross profit rose to ZiG53,8 million, surpassing projections by 108 percent.
Earnings before interest, tax, depreciation and amortisation reached ZiG17,3 million against a budgeted ZiG2,5 million. Operational profit before tax stood at ZiG3,8 million, reversing a projected loss of ZiG11,4 million.
In its trading update, chief executive Mr Richard Clarke said the results marked a highly encouraging start to the year and reflected the group’s ability to translate growth into earnings.
“These results represent a very encouraging start to the year and show that the group’s growth strategy is continuing to convert scale into earnings,” Mr Clarke said.
The company said it moved 63 173 tonnes during the quarter, 22 percent ahead of budget, while covering 2,26 million kilometres despite operating fewer trucks than initially planned.
Management attributed the performance to stronger fleet utilisation and improved operational discipline across key routes.
The update also highlighted Unifreight’s drive to strengthen its position in regional logistics through the acquisition of an effective 86,67 percent shareholding in Cheetah Express Logistics, the sole authorised FedEx Global Service Participant in Zimbabwe.
The US$2,08 million transaction remains subject to approval by the Competition and Tariff Commission, but the company said it has the potential to materially enhance its long-term earnings profile.
“This acquisition is strategically important for the group. It gives Unifreight immediate entry into the express courier segment, adds a service-led revenue stream with strong margin potential, improves revenue diversification, and strengthens the group’s position as a broader end-to-end logistics provider,” Mr Clarke said.
The deal would also give Unifreight access to FedEx’s international delivery network through Cheetah Express Logistics, extending the group’s reach beyond traditional freight operations.
Alongside the acquisition, the company has continued to invest in new transport equipment as part of a broader fleet replacement and expansion strategy.
The first 40 FAW 380FT truck tractors paired with Afrit trailers have now been delivered, with management reporting strong performance on the Beira Corridor, one of the group’s key cross-border trade routes.
According to the trading update, extensive testing showed the trucks offered lower operating costs and improved fuel efficiency compared to alternative units previously trialled within the fleet.
“It also aligns with the group’s stated plan to continue investing in FAW 380FT units and to deepen its exposure to the Beira corridor, which has already been identified as a key cross-border growth route,” Mr Clarke said.
To support the acquisition and fleet rollout, the board has allowed gearing levels to increase, funding the Cheetah deal through a combination of internally generated cash and overdraft facilities from two local financial institutions.
The facilities carry a fixed annual interest rate of 10,5 percent and are repayable over three years.
Management described the borrowing strategy as “measured and calculated”, maintaining that the expected returns from both the acquisition and fleet expansion would outweigh financing costs over time.
“The board therefore believes that the returns generated by these investments will exceed the cost of finance and will translate into stronger shareholder returns over time,” Mr Clarke said.
Looking ahead, Unifreight said it remained optimistic about the outlook for the remainder of the year, citing stronger fleet productivity, improved route economics and a more diversified business mix.
“Q1 delivered strong revenue growth, a return to profitability, and a much stronger March exit rate. The group is entering the next phase of the year with the benefit of a broader strategic platform,” Mr Clarke said.-herald
