eBusiness Weekly
Business Writer
Listed logistics firm, Unifreight Africa limited returned to profitability during the year ended December 31, 2021 despite a difficult year ravaged by Covid-19.
Unifreight was alsohit by the rapid depreciation of the local currency against the USD coupled with rising inflation in USD terms which then put pressure on profit margins.
The local currency continued on a downward path leading to inflation which in this case was in both local and USD terms owing to external factors brought by the pandemic such as increased freight costs at various ports.
In its full year to December 31, 2021 the Group’s revenue in inflation adjusted terms was 32 percent ahead of previous year at $3,212 billion, which was also 2 percent above budget due to improved tonnage.
“Despite this healthy growth in sales, margins have been pressed by rising costs. This rise in cost is mainly because of exchange rate volatility and US dollar inflation experienced during the year,” said Group chairman, Peter Annesley.
In the period under review, the group posted an inflation-adjusted profit for the year of $581 million as compared to a $123 million inflation-adjusted loss prior year comparative.
As a result, the board declared a dividend of 59 cents per share for the period.
“The operating environment remains challenging but we are confident that the authorities will implement measures to stabilise the exchange rate and inflation,” said Annesley.
Tonnage was 0,7 percent above budget and 22 percent up from the prior year.
Increase in tonnage was a result of new business acquisition and Total Transport & Logistics Solutions average growth of 50 percent in volume as existing customers recovered from the impact of Covid-19 restrictions.
Unifreight said it disposed of two subsidiaries to Zimplow Holdings for an equity consideration in 2020 as the company sought to transform its illiquid investments into tradable ZSE shares.
Through its subsidiary Clan Services, Unifreight had a stake of 51 percent in Tredcor Zimbabwe and 100 percent of Birmingham Investments, which were acquired by Zimplow.
The transaction was that Zimplow would acquire Unifreight’s 100 percent shares in Birmingham Investments for a consideration of $58 million to be settled with 15 774 446 newly issued ordinary shares in Zimplow.
In addition, Zimplow offered to acquire Clan Services 52 percent shareholding for a consideration of $67 million settled with 18 399 564 newly issued shares of Zimplow.
According to Unifreight, the transaction presented an opportunity to enhance Tredcor’s performance which the company said had dragged Unifreight’s performance over the years.
