TEA producer, Tanganda Tea Company Limited’s (Tanganda) revenue declined by 12% to US$4,4 million in its first quarter ended December 31, 2024, owing to the late onset of rains.
The decline in revenue is from a 2023 comparison of US$5 million.
In its trading update for its first quarter ended December 31, 2024, Tanganda said due to the revenue decline, the firm suffered a loss before tax of US$853 917.
“Company revenue for the quarter under review declined by 12% to US$4,4 million from US$5 million achieved in the prior year,” the tea producer said.
“The company suffered a loss before tax of US$853 917 during the quarter due to a decline in tea production volumes.”
The firm said that climate change remained one of the major risks of the agribusiness.
“The late onset of the rains negatively impacted bulk tea production for the quarter under review, resulting in a 26% decline in volumes to 1 463 tonnes from 1 986 tonnes produced in the previous year,” Tanganda said.
“In turn, export volumes declined by 11% to 1 134 tonnes from 1 274 tonnes achieved in the same period prior year.
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“Packed tea sales volumes for the quarter were 330 tonnes, 31% below prior year volumes of 475 tonnes due to challenges prevalent on the formal wholesale and retail market, which constitute the bulk of the packed tea customers.”
The firm revealed a consignment of 286 tonnes of macadamia nuts, whose export was delayed in the previous financial year due to logistical issues caused by rescheduling of ships, which was subsequently shipped during the quarter under review.
Tanganda said the firm was now pursuing alternative routes to market while maintaining relations with the traditional wholesale, retail and catering customers.
“This will create a balance of growth without hindering the recovery and performance of our traditional customer base,” Tanganda said.
“The government published a press statement on January 31, 2025 on measures addressing the informalisation of the economy, which was threatening development in specific sectors.”
With the agricultural sector expected to rebound in 2025 on account of the La Niña weather phenomenon, the company is hoping to see better returns.
This is because the phenomenon is typically associated with normal to above-normal rainfall, especially in the second half of Tanganda’s financial year.
However, there has been a slow start to the rain, and it remains erratic.
“The operating environment in the country remains complex due to policy changes and currency distortions.
“The company has put in place mitigating strategies to enhance process efficiencies and manage costs in order to improve performance,” Tanganda said.
“Notwithstanding the challenges in the operating environment, the company remains focused on adding value to its products.
“The company will continue to pursue sustainable market diversification to expand the regional and international markets.”
In October 2024, Tanganda’s board of directors announced they would meet to discuss delisting from the Zimbabwe Stock Exchange (ZSE) for a Victoria Falls Stock Exchange (VFEX) listing but later ditched this plan in December.
Instead, the board agreed to issue new shares and list on the VFEX while maintaining its ZSE listing.
