Zimbabwe-listed Unifreight Africa, formerly Pioneer Corporation Africa, is focusing on expanding its regional cross-border transport and logistics operations as monetary and economic conditions in the southern African country continue to worsen.
The southern African nation recently devalued its Zimbabwe Gold (ZiG) unit, intensifying an already precarious economic scenario characterised by soaring inflation and a crippling foreign exchange shortage.
The monetary instability has not only disrupted Zimbabwe’s economy but also caused significant operational headaches for businesses, sparking pricing distortions and liquidity crises.
Unifreight Africa, which operates well-known logistics brands including Swift, Skynet, and Bulwark, has not been immune to these challenges.
“Ongoing volatility of the Zimbabwe Gold currency, coupled with high inflation rates and restrictive monetary policies, impacted liquidity and cost structures,” noted Peter Annesley, chairman of Unifreight Africa.
“Despite these headwinds, Unifreight has managed to sustain its operational momentum through prudent financial management and strategic cost control measures.”
The company is now realigning its strategy towards enhancing cross-border operations, aiming to bolster revenue through increased capacity and improved service offerings.
During the first half of 2024, Unifreight channelled its efforts into expanding its fleet as part of its strategic goal to have 100 cross-border assets operational by year’s end. The company is confident of hitting this target, which it anticipates will significantly enhance its market position and operational capacity within the region.
“Our operational focus has been on driving efficiencies and expanding our footprint in key sectors. We have seen robust growth in the volumes of key commodities transported, particularly in the tobacco sector, which recorded a significant increase compared to the same period last year.”
Unifreight’s service portfolio, which supports high-profile clients on the Zimbabwe Stock Exchange such as Delta Corporation, Triangle Sugar Corporation, Unilever, and Nestle, has been vital in maintaining high service standards and expanding its distribution network.
However, economic turbulence has had tangible impacts; Unilever has announced plans to halt manufacturing in Zimbabwe in favour of local distributors, and Nestle has discontinued its production of Cremora in the country.
“While the macroeconomic environment remains uncertain, we are confident that our strategic initiatives, combined with the dedication of our team, will enable us to navigate these challenges effectively,” added Annesley.
Financially, the company has seen mixed results as its financial performance for the half-year period was reflective of “both the progress we have made and the challenges” it continues to face.
For the half-year period in review, operating costs surged by 12%, driven by increased vehicle and premises expenses. However, pre-tax profits rose by 11% over the previous period, largely spurred by a noteworthy 43% climb in tobacco-related business.
Other operating income was 87% below prior year,as there was no revaluation of investment properties performed at the end of the half year period.
Total comprehensive income in Unifreight was 60% below prior year while there were no asset revaluations performed at the end of the period. This had resulted in negative movement on other comprehensive income
“Our net asset value at the end of the period was a 19% increase from prior year driven by a relatively positive performance over the 6-month period,” said the company.
BUSINESS REPORT
