Listed diversified concern, Tobacco Sales Limited (TSL) revenue for the third quarter to 31 July 2021 increased by nine percent and its sales volume increased by an increase of 143%.
The Group achieved good volume growth across most business units and remains profitable
In a trading update TSL Company Secretary James Muchando Company Secretary said a good rainfall season has ensured that output of other agricultural commodities is likely to be well ahead of the previous season.
“National tobacco volumes of 200 mkg as of 31 July 2021 are 13% above prior year, whilst the tobacco national average price at US$ 2.78/kg is 11% ahead of prior year.
“Adequate interest cover on borrowings is maintained with most working capital requirements funded from internally generated resources,” Muchando said.
He noted that the developments in the marketplace from May 2021 have increased pressures on margins and may adversely affect efforts to preserve value.
“The Group continues to pursue its moving agriculture strategy in a difficult operating environment and to invest accordingly to create and preserve shareholder value.
“The availability of foreign currency and appropriately priced financing will assist in taking advantage of the existing growth opportunities. The effects of the global COVID-19 pandemic, particularly on global supply chains, continue and require ongoing management,” he said.
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