The Sunday News
Judith Phiri, Business Reporter
TRANSPORT and Logistics company, Unifreight Africa has said its revenues increased to US$4.49 million in the first quarter of 2023, reflecting a 29 percent increase against the US$3.48 million in 2022.
In a trading update for quarter 1 (Q1) 2023, the company secretary, Mr Michael Mnemo said the surge was driven by an increase in available capacity.
“We took delivery of the first 75 of 100 new FAW JN5 380hp 6×4 Tractor Units which have been paired with Afrit Taut-liners. Q1 expenditure was also 21 percent below budget as Unifreight rolled out a mass cost reduction exercise to great effect.
The combination of increased top line revenue growth with cost cutting measures has resulted in earnings before interest, taxes, depreciation, and amortization (EBTDA) profit of US$771k for Q1 2023. This is 159 percent above budget and we expect the trend to continue for the remainder of the year,” said Mr Mnemo.
He said the 75 FAW units were performing very well achieving over 2.1km/litre on a combination of short and long-haul work as well as costing below USD 0.025c/km to maintain.
Mr Mnemo said owing to the impressive performance of the FAW’s, they will look to purchase a further 15 FAW 8 140hp FL (5 Toners) as well as 15 FAW 28 290hp FL (13 toners).
“These assets will be used to replace and expand the current collection and delivery fleet. With another 100 FAW’s added to the Unifreight fleet, fixed overheads will be diluted, and the business will be able to continue on from the fine Q1 trading performance,” he added.
He said the group continues to closely monitor expenses and protect yield per KM and currently they are on track to achieve their forecast profit of US$2.9 million this year.
Mr Mnemo said executive and management was focusing on delivering positive results in a difficult trading environment to ensure shareholder value is being protected.
Formerly Pioneer Corporation Africa Limited, Unifreight operates a group of companies primarily involved in the road transport industry.
The company’s main activities include inter-city freight consolidations, distribution of general goods and a courier service.
