Zimbabwe: Tobacco Sales Increases Market Share

Source from:  The Herald (Harare) January 19, 2007 01/22/2007

TOBACCO Sales Limited increased its market share from to 42 percent last year with 52 percent of the floor's business being contract growers. In a statement accompanying their financial results for year ending October 31,2006, TSL said the increase had seen the group turnover rising by 1 134 percent. "Group performance increased significantly as a result of short-term funding requirements for the Hunyani's exports programme. Despite limited opportunities, Bak Storage another a partner in (TSL Ltd) was able to increase volumes through its warehouse division and turnover increased by 1 155 percent compared to last year (2005)," said the report. The company declared a dividend of $2,19 per share to its shareholders for 2006. TSL said in line with the decline in the tobacco crop size, sales volumes at Propak decreased by 26 percent compared to the previous year. Turnover at the subsidiary is, however, estimated to pick since the tobacco harvest is expected to rise to 65 million kilogrammes this year, a slight improvement from last year's figure of 55,4 million kg, as a result of improved service to farmers from TSL. "The Chemco group of companies performed satisfactorily but the biggest contributor to profits, Agricura, suffered from a further decline in volume as a result of shortages of foreign currency and reduced demand for agricultural chemicals. "Rose production at another subsidiary, Luxaflor, was commendable and the planned plant replacement was concluded successfully," noted the group TSL bemoaned the fixed exchange rate system, which it said was adversely affecting the performance of Cut Rag and Hunyani. "This policy will continue to undermine the value of exports. It is expected that the responsible authorities will address the exchange rate system as a matter of priority." Enditem