By ETimes
Listed logistics firm Unifreight Africa recorded earnings before interest, taxes, depreciation and amortisation profit of $3,4 billion in the third quarter of 2023, a remarkable year-over-year reversal from a loss-making position in 2022.
This was underpinned by a combination of 135% rise in revenue growth and a marginal 2% increase in spending, according to group chief executive officer, Richard Clarke.
“Q3 expenditure remained flat year on year with a marginal 2% increase between 2022 and 2023. Considering the addition of assets to our fleet this was remarkable cost containment in an inflationary environment,” Clarke said.
Volumes, a key indicator of demand, rose 135% to 120 000t in Q3 2023 from 50,000t in the comparative period.
“This increase is driven mainly through an investment in capacity during Q1 2023 where Unifreight procured 100 X FAW28-380FT which were paired with AFRIT Taut-liners.”
Clarke said the operating environment, however, has been challenging for the business.
“The 100 FAW’s have been operating within the local Zimbabwean market however depressed rates/KM have resulted in us moving some of the fleet onto more lucrative cross-border contracts.
“During Q4 2023 and into 2024 we aim to further increase our fleet of FAW’s and to allocate additional assets toward the cross-border market,” he said.
The company is now servicing the local market through smaller trucks at reduced running costs per kilometre.
“For the local Zimbabwean market, we are focussing on investment in smaller FAW28 290hp and FAW8 140hp trucks with volumetric configurations to better serve the local market at lower running costs per KM.
“This strategy is aligned with our cost containment and cross border strategy that is proving to be an effective model,” he said.
The group also lauds the policymaker’s suggestions to eliminate Intermediate Money Transfer Tax (IMTT) on bank card transactions.
“This intervention will support the formal retail industry which Unifreight transports countrywide,” Clarke said.
He said the company is optimistic about meeting their performance projections amid economic headwinds.
“We are on track to achieve our forecast profit for FY 2023-HARARE