Africa-Press – Zimbabwe. TRANSPORT and logistics firm, Unifreight Africa Limited, has projected its revenue to rise by over 30% to US$32 million this year, propelled by an increase in turnover during the first quarter.
The projected revenue is from a prior year comparative of US$24 million.
“Unifreight Africa Limited has delivered a strong start to 2025, with significant revenue growth in Q1. Total revenues for the quarter surged by over 30% compared to the same period last year, reflecting robust demand and the success of recent strategic initiatives,” Unifreight said in a trading update for the first quarter.
“Annual turnover rose from US$20,4 million in 2023 to US$24 million in 2024 and is forecast to reach US$32 million in 2025. The volume of freight handled increased substantially, driven by our expanded fleet and new business streams.
“Notably, the establishment of two new strategic business units [the 4PL logistics brokerage and a dedicated cross-border transport division] has begun to contribute materially to revenue and validate our expansion strategy.”
The firm noted that despite the top-line growth, profitability is still in a building phase.
“We have continued to invest heavily in new capacity and systems, and the benefits are still maturing,” Unifreight said.
“Both the 4PL and cross-border units are in early ramp-up, which means upfront costs have tempered immediate profits – these new SBUs, while performing well, are still in a cash-absorption phase requiring significant investment in fleet, technology and personnel.”
Consequently, Unifreight’s profit margins for the quarter remained modest.
“However, the underlying momentum is very positive. The group achieved an improved operating margin relative to late 2024, and we anticipate profitability to strengthen as revenues scale up and recent investments begin to pay off,” Unifreight said.
“Overall, Q1’s financial performance shows a solid foundation for growth and the company remains on track for a monumental year of progress in 2025.”
In the outlook, the board and management are confident about Unifreight’s prospects for 2025.
“The strong first-quarter revenue growth and operational momentum provide a solid springboard for the next quarters. We anticipate a significant increase in activity in Q2, driven by the annual tobacco harvest season,” Unifreight said.
“Tobacco remains key to our strategy and with a bumper tobacco crop expected in 2025, we will transport substantially higher tobacco volumes for our clients; we have secured additional merchant contracts and expanded our fleet accordingly.”
The firm added that its growth strategy was starting to bear fruit and expected positive trends to continue.
“The group is well positioned to achieve budget full-year results, supported by ongoing growth in cross-border operations and increasing contributions from the 4PL unit,” Unifreight said.
“These two strategic divisions are forecast to drive a larger share of revenue and profit as the year progresses and they mature into their economies of scale. Meanwhile, our core LTL [Less-Than-Truckload] and FTL [Full Truckload] divisions are holding steady and are on track to benefit from the usual second-half seasonal volume lift.”
Despite the projected revenue growth, Unifreight noted that the transport and logistics industry faced strong headwinds from high costs, currency volatility and liquidity constraints.
In the outlook, the firm is expected to keep its focus on maximising fleet utilisation and cost management to convert revenue growth into stronger profitability.
For More News And Analysis About Zimbabwe Follow Africa-Press
