TSL revenue jumps 24 percent on tobacco-led growth

TSL Limited says the year 2025 cemented its turnaround towards strong growth, underpinned by a rebound in volumes, improved operational efficiency and a buoyant tobacco season that lifted performance across its diversified business portfolio. Benefiting from a record national tobacco crop and tighter cost control, the diversified agribusiness group translated higher activity levels into stronger revenues, improved profitability and a healthier balance sheet. Group chief executive, Mr Dereck Odoteye, told an analyst briefing for the group’s financial results for the year to October 2025 that performance was closely linked to a record year for Zimbabwe’s tobacco industry, which provided a solid foundation for growth.

“From the tobacco industry perspective, the industry achieved a record, the highest in the country at the end of last month, of 255 million kilograms, up 53 percent on the previous year, and as an industry, we generated US$1,2 billion,” he said. He said while the average selling price eased slightly to US$3,32 per kilogramme, about two percent lower than the prior year, the sharp increase in volumes more than compensated for the price drop, resulting in favourable yields across the value chain. “Resultantly, TSL delivered a 24 percent increase in revenue to US$45,6 million, up from US$36,9 million in the prior year, supported by a strong 2024-2025 tobacco season and broad-based volume growth across all business units,” said Mr Odoteye.

“What you will see is that we generated more cash in the current year. We reduced our financial risk. We strengthened our balance sheet.

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And more importantly, we rewarded our shareholders,” he said. For the year under review, EBITDA rose 70 percent to US$19,3 million from US$11,4 million, while operating profit climbed 80 percent to US$16,2 million. Profit after tax from continuing operations surged 84 percent to US$10,5 million, compared with US$5,7 million a year earlier.

Mr Odoteye said the improvement in profitability was driven by higher revenues arising from increased volumes, complemented by ongoing cost optimisation initiatives implemented over the past two years. “Additional support came from fair value gains and property disposals, with US$2,5 million in after-tax fair value gains recognised during the year, alongside US$1,1 million generated from the disposal of two properties,” he said. Mr Odoteye said TSL also made progress in de-risking its balance sheet after interest cover improved by 54 percent to 10,35 times, while gearing declined from 18 percent to 13 percent.

“Debt levels fell by 21 percent to US$8,5 million, and cash balances increased fivefold to US$8,6 million at year-end,” he said. Operationally, the growth narrative was evident across individual business units. In the agricultural business unit, volumes grew across most product lines despite late rains and intense competition. “In agricultural trading, the fungicide volumes surged 167 percent following the introduction of new products, fertiliser volumes increased 137 percent and animal health remedy volumes jumped 218 percent, reflecting the impact of a new animal health plant commissioned in November 2024,” said Mr Odoteye.

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