Logistics Lift: Unifreight Doubles Profit on Cross-Border Demand

Unifreight Africa Limited has reported a 124% surge in profit after tax to ZiG202.35 million, powered by cross-border freight demand, cost control, and 4PL growth (image source)

Unifreight Africa Limited has posted a 124% year-on-year rise in profit after tax to ZiG202.35 million for the six months ending 30 June 2025, driven by surging cross-border freight demand and tight cost control measures that lifted margins. Revenue jumped 231.5% to ZiG545.5 million, supported by expanded regional operations and growth in the group’s fourth-party logistics (4PL) unit.

According to the interim results, EBITDA stood at ZiG100.9 million, while profit before tax reached ZiG51.6 million. Chairperson Peter Annesley credited the strong performance to ongoing fleet expansion along regional corridors, strategic 4PL partnerships enabling rapid scaling through subcontracted operators, and preparation for the 2026 tobacco season, which is expected to further drive logistics demand.

The company’s liquidity improved, ending the period with ZiG1.28 in short-term assets per ZiG1 of short-term liabilities, and total assets of approximately ZiG1.34 billion. However, audit firm Grant Thornton issued a qualified review conclusion, citing non-compliance with IAS 21 (foreign exchange reporting) and management’s continued designation of the US dollar as its functional currency — a disclosure risk flagged for investors.

Industry analysts welcomed Unifreight’s operational progress but cautioned that macroeconomic pressures — including high inflation, tight liquidity, and currency volatility — could strain cash flow and complicate fleet financing. “Fleet growth and 4PL scale are the right strategic levers, but foreign-exchange accounting issues and cash conversion remain critical,” said a Harare-based transport analyst.

Unifreight’s turnaround reflects a broader regional logistics recovery, as trade rebounds and shippers seek reliable cross-border capacity along key routes such as Beira and Durban–Harare. The company’s 4PL model — where a lead logistics provider integrates and manages subcontracted capacity — has allowed it to meet demand spikes without heavy capital expenditure, improving both utilisation and margins in constrained markets.

The interim report disclosed ongoing labour claims of ZiG13.7 million and closing cash of ZiG14.5 million, underscoring working-capital pressures despite strong profits. The auditor’s qualification on foreign exchange accounting also signals ongoing governance and reporting risks that may weigh on investor confidence.

“These results highlight both strong demand for our services and cost containment.” — Peter Annesley, Unifreight Chairperson

Unifreight plans to expand its fleet from Q4 2025 through Q1 2026 in preparation for increased movement during the tobacco season. Investors will be watching for evidence of improved cash conversion, continued execution of 4PL partnerships, and remediation of IAS 21 reporting gaps to sustain growth amid Zimbabwe’s volatile currency environment.