MUTARE – Zimbabwe Stock Exchange listed tea producer, Tanganda Tea Company Limited has reported a 65% decline in revenue for the third quarter ended 30 June 2025, citing weaker tea export volumes, adverse weather conditions, and exchange rate disparities.
According to the company’s trading update, revenue fell to US$6.5 million from US$18.4 million recorded in the same period last year. Profit after tax also dropped to US$1.2 million, compared to US$4.8 million previously.
Bulk tea production stood at 6,826 tonnes, 6% below the prior year’s 7,293 tonnes, largely due to late onset rains. Bulk tea export volumes fell by 19% to 3,646 tonnes.
Packed tea and coffee sales volumes, however, rose by 11% during the quarter compared to the previous year, despite an overall 8% decline against last year’s total of 1,310 tonnes.
Avocado production declined 47% to 2,121 tonnes from 3,976 tonnes a year earlier, following a November 2024 hailstorm and the biennial bearing phenomenon.
Macadamia nut harvests also dropped 43% to 849 tonnes due to extreme hot conditions during the nut-set period. Exports of 520 tonnes were 5% ahead of the previous year.
The company said the operating environment was relatively stable, supported by exchange rate stability, but challenges persisted. Low aggregate demand in the formal retail sector, tight market liquidity, and intermittent power outages adversely affected operations.
Tanganda noted that it has benefited from the liberalisation of the exchange rate for pricing.
Management said the company is actively pursuing capital raising initiatives, including a Rights offer to raise US$8 million, while future performance will depend on exchange rate stability, policy coordination, and cost reductions.
“The Company has benefitted from the liberalization of the exchange rate for pricing purposes.
“While short term inflationary dynamics are casing, the monetary authorities projection of achieving sub-30% inflation by the end of the year depends largely on the maintenance of exchange rate stability, increased policy coordination, and a reduction in external costs.
“The Company is actively pursuing capital raising initiatives through a Rights offer to raise US$8 million,” Sharon Kodzanai, the company secretary stated.
The company assured shareholders and investors that updates on the capital raising process will be communicated as progress is made.
