Unifreight reports 231% revenue growth

Published: 3 hours ago

Unifreight Africa has reported a strong financial performance for the half-year ended 30 June 2025, driven by expanding cross-border operations and increased trade activity along the Beira corridor.

Group revenue jumped 231.6% year-on-year to ZWG545.5 million, compared to ZWG164.5 million in the prior period. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 139.9% to ZWG100.9 million, while profit before tax surged 154% to ZWG51.6 million. Net profit after tax more than doubled to ZWG202.4 million, buoyed by a ZWG150.7 million income tax credit.

Despite the topline growth, profitability margins narrowed as operating expenses increased sharply. The EBITDA margin eased to 18.5% from 25.6%, while net profit margin fell to 37.1% from 54.9%. Operating expenses rose 237% year-on-year, while finance costs spiked nearly 395% due to elevated interest rates.

On the balance sheet, total assets declined 10.3% to ZWG1.35 billion, reflecting lower vehicle and equipment holdings. Retained earnings, however, grew 66.3% to ZWG507.7 million. Borrowings eased 3% to ZWG144.8 million, but liquidity tightened as cash balances fell 65.5% to ZWG14.5 million. The group recorded an operating cash outflow of ZWG5.8 million, compared with an inflow of ZWG57.5 million in the same period last year. Financing outflows of ZWG32.6 million were linked to debt repayments, leases, and fleet investment.

Basic earnings per share rose 153.6% to 194.53 cents, while headline EPS more than doubled to 194.43 cents.

Management said the performance underscored the benefits of its regional growth strategy, particularly its focus on the Beira corridor. However, it warned that rising operating costs, high interest rates, and working capital constraints remain key challenges. The company is now preparing for fleet expansion ahead of the 2026 tobacco season.
- NewZimbabwe

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