TSL Limited (“the Group” or “the Company”) hereby issues a trading update for the nine months ended 31 July 2026.

OPERATING ENVIRONMENT

The operating environment remained relatively stable during the quarter, supported mainly by tight monetary policy, policy consistency and increased foreign currency receipts, particularly from mineral exports and growing remittance inflows.

Notwithstanding this stability, the agricultural sector began to experience the early effects of the anticipated Super El Nino-induced drought. Movements in the exchange rate against the South African rand continued to affect the cost of imports from South Africa, while conflict in the Middle East resulted in elevated fuel and logistics costs.

The 2025/26 tobacco marketing season officially closed on 31 July 2026, delivering record volumes. According to the Tobacco Industry and Marketing Board (TIMB), national tobacco volumes at 31 July 2026 reached 357 million kilograms, generating US$889.7 million. This compares with 352 million kilograms sold by the same date in the prior year and 355 million kilograms sold during the full prior year season, generating US$1.2 billion. The average price declined by 25% to US$2.49 per kilogram, from US$3.32 per kilogram achieved last year.

FINANCIAL PERFORMANCE OVERVIEW

Group revenue for the nine months increased by 8% to US$42.9 million compared to US$39.8 million in the prior year, primarily driven by improved performance across the agricultural trading, packaging and tobacco marketplace businesses. Operating profit before tax for the nine months also increased by 8% to US$12.9 million.

OPERATIONAL HIGHLIGHTS

Agricultural trading (Agricura)

Crop chemical volumes increased by 5% during the quarter and by 72% over the nine-month period, reflecting increased demand for weed-management products. Growth during the quarter under review was, however, constrained by subdued demand for tobacco seedbed packs ahead of the anticipated Super El Nino.

Animal health remedy volumes increased by 198% during the quarter and by 39% over the nine-month period, driven by increased livestock treatment requirements following the January disease outbreak and new business secured during the period.

Packaging (Propak)

Hessian hire volumes declined by 11% in the quarter compared to the same period last year and were 2% lower for the nine months mainly due to timing differences in customer demand. Tobacco paper volumes increased by 10% during the quarter, driven by new business secured during the period under review. However, cumulative tobacco paper volumes for the nine months ended 31 July 2026 were 18% below the comparative period due to increased competition.

Despite these volume pressures, Propak achieved growth in revenue and profitability, supported by a more favourable customer mix.

Tobacco marketplace (TSF)

The tobacco marketing season reached its peak earlier this year compared to prior year, resulting in a significant portion of tobacco deliveries being handled during the earlier part of the season. Consequently, volumes handled by Tobacco Sales Floor (“TSF”) during the quarter under review decreased by 20% to 46.6 million kilograms, compared with 58.6 million kilograms handled during the same period last year.

Despite the lower quarter on quarter volumes, TSF handled a cumulative 88.1 million kilograms of tobacco for the nine months ended 31 July 2026, representing a 10% increase from prior year’s comparative period.

End-to-end logistics (BAK Logistics)

Forklift hours were 2% and 7% ahead of prior year for the quarter and nine months respectively, reflecting higher FMCG, fertilizer and agriculture throughput.

Space utilization improved during the quarter to 94% compared to 92% recorded in prior year driven mainly by higher fertilizer, sugar, sorghum and tobaccorelated volumes. General cargo storage volumes increased by 38% during the quarter and by 41% over the nine-month period, reflecting strong demand for warehousing services.

While general warehousing and equipment-hire volumes improved compared with prior year, bonded warehouse volumes declined by 90% during the quarter and by 68% over the nine-month period reflecting subdued demand following the removal of duty on fertilizer, as well as increased competition. Clearing volumes also decreased by 58% during the quarter and by 31% over the ninemonth period, mainly reflecting lower shipment volumes following increases in fuel and shipping costs.

Infrastructure

The property portfolio occupancy remains stable at 93% compared with same period in prior year, while average rental rates increased by 1% following selected rent reviews.

Following the completion of a 4,567 square metre warehouse at the Hubert Fox Complex in April 2026, construction of an additional modern 3,433 square metre warehouse commenced during the period under review. The development, which has been pre-leased, is progressing according to plan and is expected to be completed by the end of the financial year.

The proposed development of the Harare South land bank into residential stands remains subject to the receipt of the subdivision permit, which is expected before year-end. The amendment to the land use approval has already been secured, and the Group anticipates commencing the next phase of the development upon receipt of the remaining regulatory approval.

VICTORIA FALLS STOCK EXCHANGE LISTING

During the period under review, TSL Limited delisted from the Zimbabwe Stock Exchange (ZSE) and listed on the Victoria Falls Stock Exchange (VFEX), with the company’s securities commencing trading on VFEX on 6 July 2026.

OUTLOOK

The Group’s outlook is mixed, with the anticipated Super El Nino-induced drought expected to constrain economic activity, reduce agricultural output, and place pressure on energy generation. These conditions are likely to adversely affect demand across segments of the agricultural value chain and create a challenging operating environment in the near term. In response to these climate-related challenges, Agricura is rolling out smart climate solutions designed to help farmers build resilience and adapt to the effects of climate change.

The Group’s diversified portfolio across agriculture, logistics and infrastructure is expected to provide resilience against these anticipated headwinds while positioning the Group to capitalize on opportunities as they emerge.

While the agricultural sector and local manufacturing are expected to be adversely affected, the Group’s role in the logistics and storage of essential food supplies should provide some resilience. The Rutenga multimodal inland port, expected to become operational in Q4 2026, will facilitate inbound and outbound cargo flows and create new revenue streams for the Group.

The development of the Group’s Harare South land bank is expected to generate revenue that will partly offset the anticipated adverse impact of the drought on the Group’s agriculture-related operations.

The Group will continue to closely monitor the evolving macroeconomic and geopolitical environment, particularly developments affecting commodity prices, energy costs, supply chain dynamics, currency movements and import costs.

By Order of the Board

Fadzayi Pedzisayi
Company Secretary

14 September 2026

Related Download

TSL Limited | Trading Update for the nine months ended 31 July 2026

AfricanFinancials

Message History

Delivery option(s)