Pride Mzarabani
HARARE – TSL Limited’s revenue grew to US$45.6 million for the year ended 31 October 2025 representing a 24% growth from US$36.9 million recorded in the prior year. The growth was attributed to strong 2024-2025 tobacco season, which led to improved volumes across all business streams.
The company noted that the current profitability was driven by higher revenues, which is mainly attributable to growth in volumes and ongoing cost optimisation initiatives that the group has embarked on in the last couple of years.
Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 70% to US$19.3 million while profit for the year from continuing operations surged 85% to U$$10.5 million from the comparative period.
The growth in profitability was also complemented by fair value gains on the investment property portfolio and gains on disposal of properties and equipment.
The Group’s financial position strengthened during the year. With total assets increasing by 11% to US$99.4 million. The gearing ratio improved from 18% to 13%, while shareholders’ equity rose by 1% to US$68.4 million, The Group generated positive operating cash flows and increased cash reserves fivefold to US$8.6 million
TSL’s earnings per share grew to 2.91 US cents per share, a 212% growth from last year, headline earnings per share grew 230% to 2.8 US cents from 0.69 cents from prior year.
Group Chief Finance Officer Ndangariro Mutizwa noted that from a financial risk point of view, they reduced financial risk as demonstrated by improvement in interest cover and also reduction in gearing ratio. Interest cover improved by 54% from 6.71 to 10.35 in current year and gearing ratio reduced by 5 percentage points from 18% to 13%.
Debt level declined by 21%. Last year, in 2024 debt level was US$10.7 million that came down to US$8.5 million in 2025.
Cash reserves closed the year at US$8.6 million in cash. TSL Chief Executive Officer Dereck Odotoye said the cash build up is for the significant project the group is undertaking, which forms part of the groups own funding which goes inti the projects. The cash build up is also in preparation for the dividend.
The group has capital commitments authorised but not contracted for amounting to US$15.97 million.
Propak Hessian (Private) Limited delivered good results during the year, driven by the expansion of the national tobacco crop size and the market’s continued positive response to Propak’s locally coated paper product.
Hessian hire volumes increased by 26% compared to prior year, however tobacco paper volumes declined by 6% year on year primarily due to a decrease in exports in the current period.
Despite a challenging operating environment characterized by delayed onset of the rains and intense competition from the informal sector, Agricura (Private) Limited achieved volume growth in most product lines.
The introduction of four new products in the fungicides segment supported fungicide volume growth of 167% compared to prior year. Fertilizer volumes increased by 137%, albeit at low margins.
While volume growth in the animal health remedies segment was sustained throughout the year. Volumes of animal healthy remedy products increased by 220% compared to prior year primarily driven by the commissioning of the animal health plant in November 2024.
Property rental income from third-party tenants increased by 51%, supported by a full year’s contribution from the 15,000 square metres of world-class warehouse space added to the portfolio in the prior year, together with rental escalations effected during the period.
Occupancy levels remained stable at 87%, while net yields on the property portfolio remained flat at 10% during the year under review. Total lettable space decreased by 3% to 213,000 square metres reflecting the impact of the disposal of two properties during the year under review,
During the fourth quarter of 2025, the Group resumed construction of a modern 8,000 square metre warehouse at the Hubert Fox Complex in Harare. The facility, which is already tenanted, is expected to be completed in FY2026.
Looking ahead, the Group is cautiously optimistic about the outlook for the coming financial year as sustainable growth is influenced by prevailing economic conditions and climatic factors. Strategic priorities will centre on delivering sustainable growth while enhancing profitability and liquidity. This will be achieved through improved operational efficiencies, technology driven process optimization and disciplined cost management and treasury management.
TSL will commence the development of its 73-hectare land bank in Harare South in Q2 2026, upon completion, the project is expected to deliver approximately 1,900 residential stands, together with commercial stands, and other community amenities.
The Group commenced the refurbishment and modernisation of Agricura branches during the year, with the programme expected to be rolled out across all branches nationwide in the following year.
TSL is well positioned and prepared to leverage projected growth in tobacco crop, underpinned by investments in process optimization and warehouse space expansion. The Group will also prioritise the operationalisation of the Rutenga multimodal inland port, following the successful completion of all regulatory approval requirements.
