Zimbabwe Stock Exchange (ZSE) listed Unifreight Africa Limited said the firm had a good start to the year with half year volumes 19 percent ahead of last year and 5 percent ahead of budget as the business remains on a solid footing.
Chairman, Peter Annesley indicated the board is happy with progress achieved during the half year to June 30, 2022, particularly the acquisition of new revenue earning equipment, and the growth in the balance sheet in real terms.
This, Mr Annsley said, was expected to further drive the group’s growth trajectory for the full year and going forward coupled with the positive policy interventions being implemented by the Government to support formal businesses.
“We are also optimistic with regard to the positive changes in the monetary policy, with the view that if implemented correctly, it is in the favour of formal business flourishing, while the playing field is levelled to include the informal market in the economy. We are rigorously pursuing new revenue streams, whilst maintaining and strictly monitoring costs and are confident that we will end 2022 with a favourable set of results,” he said in an update for the half year to June 30, 2022. During the half year period, revenue grew 32 percent to $4,5 billion from $3,4 billion recorded during the same period last year. Earnings before interest tax and depreciation of $396 million was achieved which is 76 percent above prior $225 million. Total assets decreased to $7,2 billion from $8,3 billion from the prior year comparable period.
The group has been monitoring costs as margins continued to be eroded and this has resulted in this healthy increase from prior year.
“Cumulative second quarter sales in real terms were on a par with last year but 10 percent behind budget indicating that we are losing ground on yield, however we have been able to contain costs within budget and maintain a healthy bottom line .
Our cumulative net profit as a percentage of revenue is sitting at 10,9 percent which is above industry average, but unfortunately below expectations,” said Mr Annesley.
Unifreight (formerly Pioneer Corporation Africa Limited) was incorporated in Zimbabwe in 1970. It is the holding company of a group of companies primarily involved in the road transport industry whose main activities include inter-city freight consolidations, the distribution of general goods, and a courier service.
The company is incorporated in Zimbabwe while other entities in the group are incorporated in Botswana.