Imperial Logistics Seeks Partner for African Freight Expansion

JOHANNESBURG (Capital Markets in Africa) – Imperial Logistics Ltd. is looking to expand into air and sea transportation as the Africa-focused logistics group offers more services to multinationals with sales on the continent.

The Johannesburg-based company delivers goods for the likes of U.K. drugmaker GlaxoSmithKline Plc and Dutch brewer Heineken NV mainly via land routes to countries in sub-Saharan Africa. Now, it wants to add the ability to pick up products from manufacturing sites in Asia to complete the supply chain.

The lack of freight operations is “leaving that margin on the table,” Chief Executive Officer Mohammed Akoojee said in a phone interview on Tuesday. Options include an acquisition, a joint venture or integrating with a third party, he said.

Akoojee was speaking after Imperial Logistics reported its first full-year earnings since spinning off an automotive business, now known as Motus Holdings Ltd., in November last year. The company has been cutting costs in Europe and South Africa to position itself as a “gateway to Africa” for consumer-goods and pharmaceuticals firms.

“Africa is a young, vibrant, growing consumer market,” the CEO said. “We give the likes of GSK and Heineken access to points of sale.”

Nigeria, Africa’s most populous nation with about 200 million people, is a particularly attractive country, he added.

Imperial shares rose 2.1% to 48.64 rand as of 1:30 p.m. in Johannesburg, paring a decline for the year to 28%. The company also announced new growth targets for the year through June 2020, including a low-double-digit rise in operating profit.

Source: Bloomberg Business News