TSL Limited recorded 8 percent revenue growth to US$42.9 million for the nine months ended 31 July 2026, up from US$39.8 million in the prior year, with operating profit before tax also rising 8 percent to US$12.9 million despite a mixed operating environment.
In a trading update, the company said the environment remained relatively stable during the quarter, supported by tight monetary policy, policy consistency and increased foreign currency receipts from mineral exports and growing remittance inflows. However, stability was tempered by early signs of an anticipated Super El Niño-induced drought in the agriculture sector, exchange rate movements against the South African rand that affected import costs, and elevated fuel and logistics costs linked to conflict in the Middle East.
The 2025/26 tobacco marketing season, which officially closed on 31 July 2026, delivered record national volumes. According to the Tobacco Industry and Marketing Board, 357 million kilogrammes valued at US$889.7 million had been sold by 31 July 2026, compared to 352 million kilogrammes at the same point last year and 355 million kilogrammes for the full prior season valued at US$1.2 billion. The average price however, declined by 25 percent to US$2.49 per kilogramme from US$3.32 last year.
Operationally, the agricultural trading arm, Agricura, was a key driver. Crop chemical volumes rose 5 percent in the quarter and 72 percent for the nine months on strong demand for weed-management products, although demand for tobacco seedbed packs was subdued ahead of the anticipated drought. Animal health remedy volumes surged 198 percent in the quarter and 39 percent for the nine months, boosted by increased livestock treatment needs following the January disease outbreak and new business secured.
In packaging, Propak showed resilience despite volume pressures. Hessian hire volumes declined 11 percent in the quarter and 2 percent for the nine months due to timing differences in customer demand, while tobacco paper volumes increased 10 percent in the quarter on new business but were down 18 percent for the nine months due to increased competition. Despite this, Propak achieved growth in both revenue and profitability on the back of a more favourable customer mix.
The tobacco marketplace, Tobacco Sales Floor, handled 46.6 million kilogrammes in the quarter, down 20 percent from 58.6 million kilogrammes in the same period last year as the season peaked earlier. Cumulatively, however, TSF handled 88.1 million kilogrammes for the nine months, representing a 10 percent increase over the comparative period.
The end-to-end logistics unit, BAK Logistics, posted improved throughput. Forklift hours were up 2 percent for the quarter and 7 percent for the nine months reflecting higher FMCG, fertilizer and agriculture volumes. Space utilisation improved to 94 percent from 92 percent, driven by fertilizer, sugar, sorghum and tobacco-related volumes, while general cargo storage volumes grew 38 percent in the quarter and 41 percent for the nine months on strong warehousing demand. This was partly offset by a 90 percent decline in bonded warehouse volumes in the quarter and 68 percent for the nine months following removal of duty on fertilizer and increased competition, and a 58 percent drop in clearing volumes in the quarter and 31 percent for the nine months due to lower shipments amid higher fuel and shipping costs.
On infrastructure, property portfolio occupancy remained stable at 93 percent, with average rental rates up 1 percent after selected rent reviews. The Group completed a 4,567 square metre warehouse at Hubert Fox Complex in April 2026 and has commenced construction of an additional 3,433 square metre pre-leased warehouse, which is progressing on plan for completion by year-end. Development of the Harare South land bank into residential stands is awaiting a subdivision permit, with land use approval already amended.
In a strategic milestone during the period, TSL Limited delisted from the Zimbabwe Stock Exchange and listed on the Victoria Falls Stock Exchange, with trading commencing on 6 July 2026.
Looking ahead, the Group said the outlook is mixed, with the anticipated Super El Nino drought expected to constrain economic activity, agricultural output and energy generation, potentially dampening demand across the agricultural value chain. In response, Agricura is rolling out smart climate solutions to help farmers build resilience. The Group expects its diversified portfolio across agriculture, logistics and infrastructure to provide resilience, supported by its role in the storage of essential food supplies, the development of the Harare South land bank, which should partly offset drought impacts, and the Rutenga multimodal inland port, expected to become operational in the fourth quarter of 2026 to facilitate cargo flows and create new revenue streams.
