Unifreight quarterly revenue in 30pc jump
UNIFREIGHT Africa Limited recorded a 30 percent growth in total revenue for the first quarter of 2025 compared to the same period last year, driven by robust demand and the successful implementation of recent strategic initiatives.
A substantial rise in the volume of freight handled was a key driver of this growth, fueled by the expansion of the fleet and the acquisition of new business streams.
The group’s strategic business units recorded notable performance, starting with the Fourth-Party Logistics (4PL) division, which steadily ramped up operations and began contributing meaningful revenue in the first quarter of 2025.
In the review period, Unifreight’s 4PL team managed to secure agreements to move over 30 000 tonnes of goods from Beira, Mozambique, into Zambia and Zimbabwe.
The large-scale project is now underway and boosting volumes.
Fourth-party logistics, also known as 4PL, is an operational model in which a business outsources its entire supply chain management and logistics to one external service provider.
On the other hand, Unifreight’s cross-border transport division also contributed approximately one-fifth of Unifreight’s total revenue in the quarter.
This comes as the group scaled up cross-border routes, and the division now operates a dedicated fleet of over 100 trucks serving regional lanes.
“The volume of freight handled increased substantially, driven by our expanded fleet and new business streams. Notably, the establishment of two new Strategic Business Units (the 4PL logistics brokerage and a dedicated Cross-Border transport division) has begun to contribute materially to revenue and validate our expansion strategy,” said Unifreight Chief Executive Officer Mr Richard Clarke, in the first quarter trading update of 2025.
This comes as Unifreight recorded a significant increase in annual turnover, growing from US$20,4 million in 2023 to US$24 million in 2024, representing a notable rise in revenue.
According to Unifreight, the forecast suggests further expansion, with projected annual turnover expected to reach US$32 million in 2025, underscoring the company’s positive growth trajectory and potential for continued success.
“Looking ahead, the board and management are confident about Unifreight Africa’s prospects for the remainder of 2025. The strong first-quarter revenue growth and operational momentum provide a solid springboard for the next quarters.
“We anticipate a significant increase in activity in the second quarter, driven by the annual tobacco harvest season.
Tobacco remains key to our strategy, and with a bumper tobacco crop expected in 2025, we will transport substantially higher tobacco volumes for our clients; we have secured additional merchant contracts and expanded our fleet accordingly,” he said.
Unifreight, however, noted significant macroeconomic challenges that severely impacted various sectors in the quarter under review.
The transport and logistics industry, in particular, faced substantial headwinds due to high operational costs, currency volatility, and liquidity constraints.
These factors, coupled with inflationary pressures and a scarcity of long-term financing options in the local market, forced many businesses to adopt austerity measures, thereby creating a ripple effect throughout their supply chains.
The widespread nature of these challenges was underscored by the fact that even large and historically stable companies in Zimbabwe struggled with cash flow difficulties, highlighting the pervasive impact of the economic conditions on businesses of all sizes.-herald
