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Thursday, March 28, 2024
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TSL To Boost Packaging Unit

Zimbabwe Stock Exchange listed integrated agricultural company, TSL limited is in the process of setting up a new paper processing plant at its paper unit, Propak Hessian that will improve quality packaging at a much lower cost, 263Chat Business has learnt.

The development is part of the group’s cost containment measures in its production operations.

In its latest trading update, the company could not quantify the cost of the equipment but announced that the machinery was already in the country and awaiting installation from a team from India.

“A new paper processing line which is expected to produce high quality paper packaging at a lower cost has been imported and is now in the country,”

“There have been delays in the installation of the machinery by the team from India, who have been unable to travel due to COVID 19 travel restrictions. The paper packaging line is expected to be installed later in the year and in time for the next season,” the group said.

Hessian volumes at Propak in the six months to April 30, 2021 were up 46 percent on the comparative period due to the earlier start of the tobacco marketing season.

“Some business units in the Group have been negatively impacted by global supply chain disruptions particularly related to suppliers based in India,” the group said.

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Meanwhile, Revenue for group at ZWL$1.5 billion was 33 percent above prior year largely driven by volume growth in the agro inputs business.

Emirates

There has been an earlier start to the tobacco selling season resulting in increased volumes on auction in the first half of the year.

“The auction business has successfully decentralized into Karoi and Marondera in addition to the Harare floors, providing services to merchants. The logistics business has successfully undertaken the management of the transport and logistics services to and from the decentralized selling points,” the group said.

Profit from operations is 53 percent ahead of the comparative period and headline earnings are up 34 percent.

Agricura recorded volume growth in most product lines due to product availability, improved marketing and a strong distribution network. The favorable rainfall pattern resulted in an increase in demand of the unit’s product offering.

Tobacco Sales Floor (TSF) handled 2.8 million kgs and 4.5 million kgs on behalf of independent growers and on behalf of merchants (contractors) respectively in the period.

“The contract handling model continues to receive attention as most of the tobacco grown in the country is under contract. TSF successfully opened and is operating contract handling floors in Marondera and Karoi on behalf of merchants. The regulators have not approved the decentralization of the open auction system in the current year,” the group said.

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The group is however concerned about inflation in USD prices in the marketplace which are likely to impact its operations.

An interim dividend of ZWL 28cents per share payable in respect of all ordinary shares of the Company has been issued.

 

 

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