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Agriculture Reporter

ZIMBABWE Stock Exchange (ZSE) listed company TSL has recorded a 106 percent jump in revenue, thanks to a significant uptake of tobacco packaging materials in the run-up to the current tobacco sales marketing season.

In a trading statement for the first quarter ended 31 January 2023, the company secretary Ms Fadzayi Pedzisayi said growth was mainly driven by increased uptake of tobacco packaging materials by customers in anticipation of an early start to the tobacco marketing season.

“Firmer volumes in the agri-inputs business and stronger performance in the logistics business contributed to the growth,” said Ms Pedzisayi.

The group provides comprehensive solutions in the agriculture industry from seed to shelf with inputs and packaging.

She revealed that the market had welcomed the locally produced tobacco paper adding that there had been a marked increase in sales volumes. The company is adequately stocked for the season for all packaging materials.

 “Due to the earlier start of the tobacco marketing season, Propak Hessian ramped up supply and distribution of tobacco packaging materials resulting in sales volumes for both hessian wraps and tobacco paper significantly eclipsing last year’s,” said Ms Pedzisayi.

In the wake of intensified calls by the Government for strategic companies to decentralise operations in line with the devolution agenda, the group opened a new auction floor in Mvurwi. 

Its business unit completed the expansion of the Mvurwi sales floor, bringing the new warehouse space to 9 000 square metres supporting Tobacco Sales Floor’s (TSF) decentralising drive.

“During the quarter, TSF undertook extensive preparations for the tobacco marketing season. The business doubled the capacity of its decentralised floors in Mvurwi to cater for increased contracted volumes and augment the Harare, Karoi and Marondera floors,” said Ms Pedzisayi.

As Government continues to encourage partnerships between farmers and the private sector, the company is expanding its market share through maximum production and effective utilisation of the contract farming system.

Agribusinesses are expected to benefit from a large tobacco crop output that is anticipated this season, courtesy of the good rains.

“Indications are that national tobacco volumes will range between five and 10 percent above last year,” said Ms Pedzisayi.

Rainfall patterns across most of the country were reasonable and are expected to bode well for summer cropping output.