Tanganda records 48pc revenue growth in Q1
Tanganda Tea Company says it recorded a 48 percent growth in revenue for the first quarter ended December 31, 2022 over prior year comparative period in inflation-adjusted terms.
Tanganda Tea Company (Tanganda) is the biggest tea and coffee producer in Zimbabwe and is also ranked as one of the top producers of tea in Africa.
In their trading update of the period, Tanganda said despite the late onset of the rainfall season, bulk tea production volumes were in line with the comparable prior year period.
The trading update also accentuated that packed tea sales volumes grew by 13 percent for the quarter with export volumes into the region growing by 37 percent over the preceding period with 325 tonnes of macadamia nuts being exported.
However, bulk tea export volumes were 33 percent lower than the total volume produced the prior year as only 52 percent of the total production volume was produced in December.
Sharon Kodzanai the company secretary said “The trading environment was characterised by currency volatility, erratic power supplies, reduced agricultural output, the adverse impact of the pass-through effect of raising global inflation and geo-political and COVID-19 related supply disruptions.”
“Positive trends included rainfall for the quarter at levels of an average 49 percent above the prior year in the same period and the company continues to strengthen its climate resilience through reservoir construction and building irrigation systems for improved productivity” she added.
“In addition to this, business interruptions caused by ongoing power outages have been significantly reduced by the solar plants at three of our five estates” commented the company secretary.
Going forward, the company said it will be focusing on exploring value-addition options and cost management to mitigate against reduced profit margins and it is optimistic about its prospects during the financial year as all crops are looking good and there is firm demand for its products.-ebusinessweekly
