TSL Limited recorded an eight percent increase in revenue to US$42.9 million for the nine months to July 2026, driven by stronger performance across its agricultural and tobacco businesses, but projected an uncertain outlook due to a forecast Super El Niño.
The agro-industrial and logistics group said the agricultural sector will likely be the hardest hit by the El Nino’s severe weather conditions, with ripple effects across the economy.
“The group’s outlook is mixed, with the anticipated Super El Nino-induced drought expected to constrain economic activity, reduce agricultural output, and place pressure on energy generation,” TSL said in a trading update released Wednesday.
It said while the operating environment has been “relatively stable”, the agricultural sector has “began to experience the early effects of the anticipated Super El Nino-induced drought”.
“These conditions are likely to adversely affect demand across segments of the agricultural value chain and create a challenging operating environment in the near term,” said TSL, which recently migrated from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange.
In response to these climate-related challenges, TSL said its “diversified portfolio across agriculture, logistics and infrastructure is expected to provide resilience against these anticipated headwinds while positioning the group to capitalize on opportunities as they emerge”.
“While the agricultural sector and local manufacturing are expected to be adversely affected, the Group’s role in the logistics and storage of essential food supplies should provide some resilience,” the group said.
It added that its agriculture trading business, Agricura, is rolling out smart climate solutions designed to help farmers build resilience and adapt to the effects of climate change.
The group’s operating profit before tax for the nine months went up eight percent to US$12.9 million.
TSL said the Rutenga multimodal inland port, expected to become operational in the fourth quarter of 2026, will facilitate inbound and outbound cargo flows and create new revenue streams for the group.
Despite volume pressures, TSL said its packaging business, Propak, achieved growth in revenue and profitability, supported by a more favourable customer mix.
At its logistics unit, BAK Logistics, general cargo storage volumes increased by 41 percent over the nine-month period, reflecting strong demand for warehousing services.
TSL said while general warehousing and equipment-hire volumes improved compared with prior year, bonded warehouse volumes declined by 68 percent over the nine-month period, reflecting subdued demand following the removal of duty on fertilizer, as well as increased competition.
Clearing volumes also decreased by 31 percent over the nine-month period, mainly reflecting lower shipment volumes following increases in fuel and shipping costs.