Published: 10 hours ago

Tanganda Tea Company Limited has recorded a 65% increase in revenue for the third quarter ended June 30, 2025, despite facing lower export volumes, adverse weather, and exchange rate volatility.

Revenue for the quarter rose to US$5.6 million, up from US$3.4 million in the same period last year. However, cumulative earnings for the first nine months fell 6% to US$13.7 million, compared to US$14.5 million in 2024, reflecting persistent operational challenges.

The company attributed the quarterly growth to improved pricing, but warned that inconsistent rainfall patterns and currency fluctuations continue to weigh on overall performance. Bulk tea production fell 6% to 6,826 tonnes from 7,293 tonnes last year due to delayed rains, while export volumes declined 19% to 3,646 tonnes. Packed tea and coffee sales rose 11% during the quarter, although total volumes remained 8% lower than last year's 1,310 tonnes.

Agricultural output across other crops also faced setbacks. Avocado production dropped 47% to 2,121 tonnes following a November 2024 hailstorm and the biennial bearing cycle, while macadamia nut harvests fell 43% to 849 tonnes due to extreme heat during the nut-set period. Despite this, exports of macadamia nuts increased 5% to 520 tonnes.

Tanganda noted that the operating environment remained relatively stable, aided by exchange rate liberalisation, but highlighted ongoing challenges including weak demand in the formal retail sector, tight liquidity, and intermittent power supply.

Management confirmed plans to raise US$8 million through a Rights offer to support operations. The company said future performance will hinge on exchange rate stability, policy coordination, and effective cost management.
- NewZimbabwe

You might also want to read this

• Tanganda abandons VFEX listing plan
• Tanganda Tea invests in $2.5m plant