TSL Limited delivered a strong financial performance for the year ended October 31, 2025, recording an 85% jump in profit after tax as a recovery in agriculture, record tobacco production and operational efficiencies boosted earnings across most of its business units.

The diversified group reported profit from continuing operations of US$10.5 million, up from the comparative period, while revenue rose 24% to US$45.6 million.

Earnings before interest, tax, depreciation and amortisation increased 70% to US$19.3 million, underscoring the strength of the group's core operations following improved agricultural activity and rising tobacco-related business volumes.

Presenting the company's annual results, TSL Chairman Antony Mandiwanza said the operating environment had improved considerably compared to the previous year, which had been affected by the El Niño-induced drought.

"The operating environment during the year under review was more favorable than in the prior reporting period," Mandiwanza said.

"This improvement was mainly underpinned by a recovery in the agricultural sector following the El Niño-induced drought experienced in the previous year, increased diaspora remittances, a thriving mining sector mainly driven by higher gold production volumes and record gold prices, as well as improved power generation."

The recovery in agriculture proved particularly beneficial for TSL, whose operations span agricultural trading, packaging, tobacco auction services, logistics, warehousing and property development.

Zimbabwe's tobacco sector delivered a record crop during the period, with national deliveries reaching 355 million kilograms and generating approximately US$1.2 billion.

"The tobacco industry achieved record deliveries of 355 million kilograms and generated approximately US$1.2 billion," Mandiwanza said.

"This compares favourably with the 232 million kilograms achieved in the prior season, representing an increase of approximately 53% year-on-year."

The tobacco boom significantly boosted volumes handled by Tobacco Sales Floor, one of the group's key subsidiaries.

TSF processed 81 million kilograms of tobacco during the year, compared to 52 million kilograms previously, representing growth of 56%.

According to the company, the increase was supported by strong grower participation, merchant engagement and the group's strategy of decentralising auction floors to major tobacco-producing areas.

The agricultural division also posted solid growth.

Propak Hessian benefited from increased tobacco production, with hessian hire volumes rising 26%, while Agricura recorded substantial gains across several product lines despite difficult trading conditions.

Fungicide volumes surged 167%, fertiliser volumes increased 137%, while animal health products grew 220% following the commissioning of a dedicated animal health plant.

The positive operational performance translated into a stronger balance sheet.

"The Group's financial position strengthened during the year, with total assets increasing by 11% to US$99.4 million," Mandiwanza said.

"The gearing ratio improved from 18% to 13%, while shareholders' equity rose by 11% to US$68.4 million."

The company also significantly improved liquidity, increasing cash reserves fivefold to US$8.6 million while maintaining positive operating cash flows.

TSL's logistics cluster benefited from the strong agricultural season and improved warehouse utilisation.

Forwarding volumes more than doubled, increasing 107%, largely driven by fertiliser imports and bonded warehouse operations. General warehouse utilisation rose to 91%, up from 88% in the previous year.

Meanwhile, the group's property portfolio continued to generate stable income.

Rental income from third-party tenants increased 51%, supported by newly developed warehouse facilities and rental escalations.

Occupancy remained firm at 87%, while property yields held steady at 10%.

The group also resumed construction of an 8,000-square-metre warehouse at its Hubert Fox Complex in Harare, which is already fully tenanted and expected to be completed during the current financial year.

TSL is preparing to embark on one of its largest property developments to date.

The company plans to begin developing its 73-hectare land bank in Harare South during the second quarter of the 2026 financial year.

"Upon completion, the project is expected to deliver approximately 1,900 residential stands, together with commercial stands and other community amenities," Mandiwanza said.

The group is also banking on continued growth in tobacco production after the Tobacco Industry and Marketing Board reported a 22% increase in both irrigated tobacco area and total planted hectarage.

"TSL is well positioned and prepared to leverage projected growth in the tobacco crop, underpinned by investments in process optimisation and warehouse space expansion," Mandiwanza said.

Beyond tobacco and property development, the company will prioritise operationalising the Rutenga multimodal inland port after completing all regulatory approval requirements.

Despite the positive outlook, Mandiwanza acknowledged that challenges remain, including inflationary pressures, constrained liquidity and limited access to long-term financing.

Nevertheless, he said the group remains focused on sustainable growth, improved profitability and stronger cash generation.

"Strategic priorities will centre on delivering sustainable growth while enhancing profitability and liquidity," he said.

"This will be achieved through improved operational efficiencies, technology-driven process optimisation, disciplined cost management and treasury management."

TSL also rewarded shareholders during the year through a special dividend of US$4.8 million and subsequently declared a final dividend for the 2025 financial year, reflecting confidence in the group's earnings outlook and financial position.