TOBACCO Sales Limited (TSL) says it has recorded a 13% increase in revenues in Q3 2024 compared to same period last year, driven by a stellar performance of its logistics business.
In its Q3 2024 update, the group said it also generated positive operating cashflows, which it reinvested in its expansion.
“Group revenue for the quarter is 13% ahead of last year mainly due to the volume growth in the logistics business. 83% of group revenue was generated in US dollars cumulatively at the end of the quarter,” the group said.
“A significant crystallisation of US dollar costs was noted in the quarter, resulting in US dollar inflation.
“Tobacco Sales Floor cumulatively handled 52,5 million kg of tobacco compared to 52 million kg in the comparative period. Contracted tobacco represented 84% of the volume handled by the business, a 13% growth from last year. In the quarter, volumes were 23% ahead of prior year.”
Propak Hessian, however, saw volumes at 27% below prior year cumulatively due to lower uptake of product by tobacco merchants as the national crop size declined.
TSL said tobacco paper volumes were 39% ahead of prior year in the quarter due to an increase in market share.
Agricura’s performance was negatively affected by the impact of the El Niño-induced weather conditions experienced in the year.
As a result, volumes were depressed across most product lines as demand was low, TSL said.
“In the farming operations, better yields were achieved compared to the previous year on tobacco and soya bean. Volumes from the banana plantation for the quarter were 13% above comparative period aided by a new irrigation system despite adverse weather,” the agro-commodities firm said.
“The logistics business recorded mixed volumes performance in the quarter. Tobacco handling volumes (cartons) were 37% below comparative period, while general cargo volumes declined as key customers slowed down on space and uptake of handling services.
“Tobacco handled from the decentralised tobacco auction floors increased by 21%. Distribution handling volumes increased by 47% and transport recorded an 8% growth in distance travelled. The ports business grew by 42% due to positive performance from existing strategic partnerships.”
Clearing volumes grew by 21% due to improved volumes from key customers while the forwarding business declined.
Premier Forklift volumes were 2% ahead of the prior year due to increased business from existing clients with a significant increase in forklift sales, TSL said.
During the period, Avis’ rental days were 24% below prior year as a result of increased competition from unregulated operators.
The group said voids significantly improved in the period to 10% from 14% in prior year due to improved demand for warehouse space and release of space that had been under construction.
