Unifreight Africa eyes to tap into festive period business activity
TRANSPORT and logistics firm, Unifreight Africa Limited is eyeing the festive season to increase business efficiencies and expects interventions from the government to curtail informal imports that have been competing with domestically produced goods so as to support local industry.
The festive season is traditionally associated with high business activities and the transport firm seeks to tap into that.
“The Group remains optimistic about the future and looks forward to being able to utilise our increased capacities during the traditional festive period ramp-up in retail spending between October and December.
“We are also hopeful there will be interventions from government to curtail informal imports that have been competing with domestically produced goods so as to support local industry, and promote job creation,” said board chairman Mr Peter Annesley in the financials for the half year ended 30 June 2023.
The Zimbabwe Stock Exchange (ZSE) listed firm is a transport holding company offering services in logistics, freight, and passenger services to clients in sub-Saharan Africa.
The company has since 2020 pursued new revenue streams, investments in new vehicles, and disposed of some assets, setting a firm foundation for business sustainability.
According to the financials, the firm enjoyed improved business in the first half of 2023 with overall volumes up 38 percent year on year.
Significant contributions came from tobacco, where it transported over 40,000 tons/annum which is 91 percent up from last year.
It added that with the new fleet acquired, it has been able to dedicate vehicles to blue chip customers such as Delta, Triangle, Unilever, Nestle, Cairns who all require nationwide distribution.
In the period under review, the group tonnage grew by 50 percent from prior year (though 18 percent below budget), largely driven by tobacco volumes and increased FTL volumes from new vehicle assets.
The firm recently had a successful recapitalisation exercise that added 100 new trucks in the business.
Mr Annesley noted that the group posted $55 billion in revenue which is 115 percent above prior year restated revenues of $22 billion.
The group recorded a net profit before tax of $6 billion which is 30 percent below prior year due to increase in finance costs.
It said finance costs were driven by revaluation of foreign denominated loans obtained to finance new vehicles amounting to $44 billion.
Total Group Inflation Adjusted Earnings were $66 billion (Historical earnings $95 billion), largely driven by the revaluation of assets following a change in accounting policy from the cost model to revaluation model.
“Our balance sheet grew from $66 billion to $269 billion due to a combination of recapitalisation of our fleet and revaluation of assets.”-chronicle
