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Growth on Steroids: TSL’s Q3 Revenues Surge by 229%

In the world of business, some stories stand out as beacons of success, illuminating the path for others to follow. Zimbabwe Stock Exchange-listed Tobacco Sales Limited (TSL) is undoubtedly one of these beacons. In a staggering display of growth, TSL’s third-quarter revenues skyrocketed by an astounding 229%, reaching ZWL$66.8 billion. This impressive leap is a testament to TSL’s strategic prowess, operational excellence, and unwavering commitment to delivering value. In this article, we dissect the factors behind this remarkable surge and explore the strategies that have propelled TSL to new heights.

A Resounding Success:

TSL’s recent trading update for the third quarter paints a picture of resounding success. Profits have continued their upward trajectory, driven by multiple factors that have synergized to create an environment ripe for growth. Strong volume growth in tobacco-related businesses, enhanced operating efficiencies, and increased capacity utilization have all played pivotal roles in this remarkable achievement.

Breaking Down the Numbers:

The numbers tell a compelling story. TSL’s group revenue for the quarter reached a staggering ZWL$66.8 billion, marking a remarkable 229% increase compared to the previous year, when revenues stood at ZWL$20.3 billion in inflation-adjusted terms. What’s even more impressive is the 47% growth in the US dollar portion of revenue, highlighting the company’s ability to thrive in international markets. It’s worth noting that TSL’s group borrowings are foreign currency-denominated and remain low, ensuring healthy interest coverage.

A Tobacco Triumph:

One of the standout aspects of TSL’s success story is its handling of tobacco. During the period, TSL handled a cumulative total of 51.9 million kilograms of tobacco, representing a remarkable 125% increase compared to the previous year. What’s particularly encouraging is that 75% of these volumes came from the contracted tobacco market. TSL attributes this success to a larger national tobacco crop, effective decentralization of operations, and the acquisition of new customers.

Diverse Success Stories:

TSL’s success extends beyond tobacco. Propak hessian volumes surged by 17%, thanks to stock availability and a larger tobacco crop size. Tobacco paper volumes saw a staggering 90% increase, reflecting the market’s positive response to locally-coated paper.

Agricura, while experiencing mixed performance in some product lines, achieved better yields in tobacco, soybean, and commercial maize. The new banana plantation, which commenced production during the year, contributed to improved volumes.

Leveraging the Value Chain:

TSL’s innovative business model, designed to support customers throughout the value chain, has yielded impressive results. Logistics divisions saw increased volumes, with tobacco handling volumes significantly surpassing the previous year. Rail services from Maputo and Beira continued to operate satisfactorily, while clearing and forwarding volumes remained strong.

Challenges and Strategies:

In the face of challenges in the operating environment, such as depressed demand in the fast-moving consumer goods division, TSL remains resolute in its commitment to strategic initiatives. The company is steadfast in pursuing its “moving agriculture” strategy while protecting shareholder value.


TSL’s remarkable Q3 performance is a testament to its unwavering commitment to excellence and innovation. With impressive revenue growth, thriving tobacco-related businesses, and a diversified success portfolio, TSL stands as a beacon of success in the business world. As they continue to navigate challenges and pursue strategic initiatives, the future looks bright for this trailblazing company, setting a high standard for others to aspire to.

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