- Bulk tea production went down by 4%
- Avocado production declined by 38%
- PAT decreased by 10%
Harare- Tanganda Tea Company, a company listed on the Zimbabwe Stock Exchange (ZSE), has faced significant challenges in its production across key categories, attributed to a combination of natural and macroeconomic factors.
Bulk tea production witnessed a decline of 4% compared to the corresponding period in the previous year with avocado production experiencing a substantial decrease of 38% compared to the production level of the prior year.
The decline in bulk tea production was attributed to the delayed onset of the rainy season, which had a direct impact on the company's export of bulk tea.
The late arrival of rains led to a 12% decrease in bulk tea exports compared to the previous period.
“Avocado production was 38% below prior year as a result of biennial bearing phenomenon coupled with the impact of the extensive pruning carried out on 55 hectares of mature trees to rejuvenate them,” said the Company in a trading update.
Consequently, the Company anticipates that revenue from avocado exports will be realised during the final quarter of the financial year.
Sales volumes of packed tea witnessed a decrease of 7%. This decline was attributed to the rapid depreciation of the Zimbabwean dollar, which led to reduced volumes from certain customers.
“To counter this impact, the Company continues to develop alternative trading channels,” said the Company.
According to the company, macadamia production remained on par with the previous year, indicating that 269 tonnes of the current year's crop had already been exported. Additionally, there were 475 tonnes from the previous year that remained unsold at the end of that year.
Due to the decline in crop production across various categories, the company reported a profit after tax of ZWL9 billion for the period, which is 10% lower than the ZWL10 billion achieved in the previous year.
Despite this, the company highlighted the positive development of improved electricity generation, which helped reduce costs both from the national grid and its solar investments.
However, the company maintains a pessimistic outlook due to ongoing inflationary pressures and the rapid depreciation of the local currency. Nevertheless, the company intends to implement mitigatory measures such as value addition and efficient cost management to address these challenges.
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