# Tingo Group completes first batch of export deals, generating $348 million of sales

- Link: https://www.directorstalkinterviews.com/tingo-group-completes-first-batch-of-export-deals-generating-348-million-of-sales/4121120822
- Published: 2023-05-30T13:23:41+01:00
- Author: Anthony Fox

**Tingo Group, Inc.** (NASDAQ: TIO) has announced today that its export business,
operated through wholly owned subsidiary Tingo DMCC, has completed its first batch
of export deals, generating $348 million of sales with a gross profit approaching
$100 million.

The sales completed today are part of an anticipated long-term multi-billion-dollar
pipeline of export transactions, more than $1 billion of which are currently being
processed for expected delivery by the third quarter of 2023.

Having focused on developing a strategic partnership with Prime Commodity Exchange
Limited (“PCX”) and the All Farmers Association of Nigeria (“AFAN”), which, as announced
on April 26, 2023, includes exclusive use of AFAN’s existing nationwide network 
of warehouses (a network that is targeted to grow to 80,000 sites over the next 
two years) and the right of first refusal to purchase or trade all produce stored
in the warehouses, Tingo Mobile and Tingo DMCC have established a strong foundation
and infrastructure from which to procure, handle and deliver several billion dollars
per annum of agricultural produce.

In addition to the export of unprocessed agricultural produce, Tingo DMCC is planning
the imminent launch of finished food and beverage exports from Tingo Foods, initially
of rice, cooking oils, nut products, noodles and pasta, for which there is a substantial
global market that the Company believes is considerably under-supplied.

Through its exports, Tingo DMCC is now expected to dollarize the entire amount of
Tingo Group’s net income on a monthly basis before the end of 2023, and today’s 
first $348 million of sales marks a major milestone towards achieving this goal.
Such dollarization, combined with Tingo’s considerable profits ($262.5 million of
Net Income Before Tax for the first quarter of 2023) and cash generation ($780.2
million cash balance at March 31, 2023), is a major step towards achieving the Company’s
goal of introducing a quarterly dividend in the second half of the year.

> **Darren Mercer, Chief Executive Officer of Tingo,** commented: “The commencement
> and ramp-up of the Tingo DMCC export business, together with its impact on our
> dollarization and globalization, is a momentous event for us.
> “The management teams of Tingo Mobile and Tingo DMCC have worked together tirelessly
> to develop and establish a robust and highly scalable supply chain and infrastructure,
> including through our recently signed strategic partnership with AFAN and PCX,
> to enable us to target several billion dollars of agricultural produce per annum.
> This strong foundation gives us confidence in our ability to execute the additional
> export opportunities we are currently progressing.
> “Our Tingo DMCC team is also working with Tingo Foods to expand our export business
> into finished food and beverage products, as we continue to strengthen and further
> augment our unique seed-to-sale ecosystem.
> “With the infrastructure in place to support our burgeoning export business, we
> are confident Tingo DMCC will deliver a material acceleration in both revenue 
> and earnings growth. Additionally, we expect the export business to completely
> dollarize our net income on a monthly basis before year end 2023. We believe this
> dollarization is a significantly important development for the Group and our business
> plans, as well as a key catalyst for generating shareholder value.
> “Having considerably outperformed market expectations in the first quarter of 
> 2023 and with the second quarter now anticipated to do the same, together with
> our exciting outlook for the remainder of the year, the pivotal achievement of
> dollarizing our earnings is expected to soon enable the payment of sizeable quarterly
> dividends, and with ample cover. It is the Board’s opinion that this strategy 
> will be the most effective in dealing with our obvious share price disconnect 
> and also our high levels of share price volatility.

> **Dozy Mmobuosi, founder of Tingo Mobile and Tingo Foods, **commented: “We have
> invested considerable time and resource in recent years with the ambition and 
> aim of achieving today’s hugely important milestone. Through the launch of our
> export business, we are now able to offer access to global markets for Tingo Mobile’s
> farmers. A key part of our corporate mission, and our ability to procure produce
> for export, has been the success of our Tingo Mobile and Nwassa platforms to significantly
> increase farmers’ crop yields, and ensure more of their produce gets to market,
> as further facilitated and enhanced through our strategic partnership with AFAN
> and PCX.
> “By focusing on establishing a strong foundation for our export business, and 
> its supply chain and infrastructure, we believe we have developed a highly scalable
> business that is capable of delivering several billions of dollars of highly profitable
> revenues per annum. As we strive to constantly improve and strength our eco-system,
> adding value every step of the way from seed-to-sale, including from today with
> our ability to facilitate global export sales, we believe we are making a tremendous
> difference in delivering financial upliftment to Africa’s farmers and their wider
> communities, while also meaningfully tackling food poverty and food security, 
> as well as helping improve Africa’s balance of payments.
> “When we embarked on the mergers of Tingo Mobile and Tingo Foods with Tingo, our
> collective objectives included significantly increasing shareholder value, both
> in the short term and the long term. Now through the ability of our export business
> to dollarize the earnings of the Group, I am very excited about the prospect of
> rectifying our considerable valuation and share price disconnect.”

**Tingo Group**

Tingo Group, Inc. (NASDAQ: TIO) is a global Fintech and Agri-Fintech group of companies
with operations in Africa, Southeast Asia and the Middle East. Tingo Group’s wholly
owned subsidiary, Tingo Mobile, is the leading Agri-Fintech company operating in
Africa, with a comprehensive portfolio of innovative products, including a ‘device
as a service’ smartphone and pre-loaded platform product. As part of its globalization
strategy, Tingo Mobile has recently begun to expand internationally and entered 
into trade partnerships that are contracted to increase the number of subscribed
farmers from 9.3 million in 2022 to more than 32 million, providing them with access
to services including, among others, the Nwassa ‘seed-to-sale’ marketplace platform,
insurance, micro-finance, and mobile phone and data top-up. Tingo Group’s other 
Tingo business verticals include: TingoPay, a SuperApp in partnership with Visa 
that offers a wide range of B2C and B2B services including payment services, an 
e-wallet, foreign exchange and merchant services; Tingo Foods, a food processing
business that processes raw foods into finished products such as rice, pasta and
noodles; and Tingo DMCC, a commodity trading platform and agricultural commodities
export business based out of the Dubai Multi Commodities Center. In addition to 
its Tingo business verticals, Tingo Group also holds and operates an insurance brokerage
platform business in China, with 130+ offices located in China’s cities and major
towns; and Magpie Securities, a regulated finance services Fintech business operating
out of Hong Kong and Singapore.

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