TSL Limited reports modest growth amid market uncertainties
TSL Limited released its financial results for the year ended October 31, 2024, revealing a modest 1 percent revenue growth from US$36,7 million in FY2023 to US$36,9 million.
While most business units met their budgeted volumes, Agricura faced challenges due to drought in the first half of the 2023/24 agricultural season. Despite the slight revenue increase, the group’s EBITDA declined by 5 percent, dropping from US$11,99 million in FY2023 to US$11,39 million, mainly due to the conversion to US dollars.
In a strategic move to conserve cash ahead of its planned acquisition of a 51,43 percent stake in Nampak Zimbabwe
Limited from Nampak Southern Africa Holdings Limited, TSL’s board opted not to declare a dividend for the period.
The decision reflects the company’s focus on expansion and strengthening its market position, even as external pressures, including adverse weather conditions and currency shifts, impact performance.
Meanwhile, the broader Zimbabwean equities market has shown mixed performance. On March 3, 2025, the ZSE All Share Index (ALSI) dipped by 0,18 percent to 203.70 points, while the Top 10 Index climbed 0,43 percent to 203.78 points, indicating resilience among the market’s leading stocks.
The ZSE market capitalization edged up 0,26 percent to US$2,33 billion, reflecting overall positive sentiment. On the VFEX, the ALSI increased by 0,40 percent to 105.68 points, with the market cap rising 0,42 percent to US$1,19 billion, albeit with limited trading volumes.
Simbisa Brands also released its half-year results, reporting a 7,3 percent revenue increase to US$157 million.
However, earnings declined by 11 percent to US$8,71 million, highlighting the pressure on profitability despite solid top-line growth.
The company maintained strong cash flows, with cash from operations surging 39 percent to US$29,35 million.
Looking ahead, Platinum Securities anticipates that, “The month-end-driven surge in equity prices will persist before stabilizing towards the end of the week.”
However, the VFEX is expected to see subdued activity due to low investor participation, as capital continues to be directed towards competing USD-denominated assets and limited foreign investment.
Overall, the market remains in a state of cautious optimism, with investors balancing corporate earnings performance, economic policy changes, and sectoral headwinds as they position themselves for the months ahead.-ebsinessweell
