Tanganda Tea Company Limited Reports 9% Decline in Bulk Tea Production Compared to Previous Period.

Published On: February 2, 2024Company: Tanganda Tea Company Limited (TANG.zw)
What was the revenue increase experienced by the Tanganda Tea Company Limited in the year ended 30th September 2023?
The revenue for the Tanganda Tea Company Limited increased by 42% from the previous year, expanding from ZWL90.77 billion to ZWL128.99 billion.

Executive Summary

  • The operating environment for Tanganda Tea Company Limited was challenging with exchange rate volatility leading to inflationary pressures and increasing production costs. These were further compounded by electrical problems and weather conditions, including extreme temperature fluctuations and erratic rainfall.
  • Despite these challenges, the company remained focused on its value-addition prospects and cost management strategy.
  • The Company will celebrate its hundred-year existence in 2024, a milestone significant for the Company and its stakeholders as it plans to reposition the iconic brands within its stable.
  • Revenue increased by 42% from the previous year, growing from ZWL90.77 billion to ZWL128.99 billion. However, the company recorded an inflation-adjusted loss after tax of ZWL17.05 billion compared to a profit after tax of ZWL4.33 billion in the previous year.
  • Bulk tea production and avocado exports decreased due to climate conditions, while macadamia exports increased. Prices for macadamia decreased significantly due to market preference changes.
  • The company strategies include investing in value addition options for primary produce, diversifying markets into Europe and America, and pushing up the percentage of domestic sales made in United States Dollars to hedge against local currency inflationary pressures and devaluation.
  • The company remains committed to sustainable business practices and has retained its accreditation to various certifications due to this commitment.
  • As part of its future outlook, the company plans to mitigate the potential impacts of the predicted El Nino through investments in irrigation technology. Additionally, the demand for the company’s products remains strong and the growth strategy involves further diversification of the regional market.
  • Due to the depressed performance of macadamia and avocado crops, the Board of Directors recommended not to declare a dividend for the financial year.

Useful links

About Tanganda Tea Company Limited (TANG.zw)

Tanganda is the largest producer, packer and distributor of tea in Zimbabwe. The first commercial tea was planted at New Year’s Gift Estate in 1924. Tanganda, to date has also developed the largest hectarage of both macadamia nuts and avocados to become the single largest producer of both crops in Zimbabwe. The Company is also involved in coffee production and spring water bottling. Tanganda Tea Company Limited (TANG.zw) is listed on the Zimbabwe Stock Exchange

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Giri

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