Tuesday, June 18, 2024
HomeBusinessUnifreight secures 20pct of tobacco sector transport

Unifreight secures 20pct of tobacco sector transport

Logistics firm, Unifreight Africa (Unifreight) says it expects growth of its business to be grow significantly sustained by quality of contracts it has secured, including absorbing 20 percent of Zimbabwe’s tobacco industry transportation needs for the current year.

The group invested extensively in fleet expansion last year which grew its capacity to increase volumes.

In its full year financial results to December 2023, the company said its new fleet has enabled it to also grow externally.

“Our growth is underpinned by quality contracts we have been able to execute following completion of the fleet expansion project in 2023. We have successfully secured a larger share of the tobacco market and now transport over 20% of the total Zimbabwean tobacco crop,” said the group.

Zimbabwe’s tobacco production, although is expected to drop by at least 10 percent to 265 million kg in 2024 from its biggest ever crop of 296 million kg last year due to an El Nino-induced drought, will still provide good business for the group in terms of transportation.

In 2023, the group posted profit of ZW$ 192 billion which was largely attributed to improvements in operating margins which rose from 0 percent in 2021 to 2.56 percent in 2022 and further to 20.6 percent in 2023.

ALSO ON 263Chat:  RTG Posts Strong Recovery As Q1 Earnings Match Pre-Pandemic Levels

“The significant improvement in 2023 was driven by the management team’s aggressive pursuit of cost containment strategies, coupled with the deployment of an additional 50 FAW 380FT Truck Tractors with Afrit Tautliner Trailers into the local and cross border market,” said Unifreight.

During the year, the group successfully renegotiated terms on foreign-denominated loans with major financiers to more favorable local conditions.

As of 31 December 2023, our loan book stood at ZW$ 24 billion.

“Additionally, we transitioned our Property Plant and Equipment policy from a cost model to a revaluation model, resulting in a deferred tax liability of ZW$52 billion in 2023, up from ZW$2 billion in 2022.

Share this article
Written by

263Chat is a Zimbabwean media organisation focused on encouraging & participating in progressive national dialogue

No comments

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You cannot copy content of this page