- Tea production surges 28% to 2,880 tonnes, exceeding prior year's levels
- Macadamia sales volumes jump 93%, offsetting challenges in other crop sales
- Investment in new X-ray machine boosts macadamia nut quality and pricing
Harare- Ariston Holdings Limited, a prominent agricultural company, has reported a significant surge in tea production during its latest third quarter trading update for the period ended June 30, 2024.
The company's tea production volumes increased by 28% to 2,880 tonnes, surpassing the previous fiscal year's (FY2022) production of 2,850 tonnes.
However, the company's financial performance which improved by 0.5% was primarily anchored by its macadamia nut operations, where improved prices were able to offset the poor sales of other crops.
The macadamia nut harvest was 2% lower than the comparative quarter, with 1,292 tonnes harvested compared to 1,313 tonnes in the previous period.
Despite the slight decline in production, macadamia nut sales volumes for the period were 93% ahead of the prior comparative period, reaching 1,171 tonnes.
The company attributed the improved macadamia nut performance to an increased demand in the macadamia industry, which was impacted by a global decline in volumes during the COVID-19 pandemic period.
While tea production witnessed a significant surge, tea sales volumes for the current year to date were 17% behind the prior comparative period's sales of 2,371 tonnes, reaching 1,964 tonnes.
This discrepancy between production and sales may be due to factors such as market conditions, inventory management, or distribution challenges.
The company's competitor, Tanganda, reported a decrease in the average export selling price for tea, from US$1.45 per kg in the previous year to US$1.38 per kg in the current period.
However, Ariston Holdings Limited stated that its own average selling prices for both export and local sales held at the same level as the prior comparative period.
During the reporting period, Ariston made a notable investment by purchasing and installing a new X-ray machine. This new equipment enables the company to accurately differentiate macadamia nut in shell into its different kernel sizes, which enhances their ability to determine selling prices and guarantee product quality on sale.
Overall, the company's performance was a mix of successes and challenges. While tea production saw a significant increase, tea sales volumes lagged behind, and the company's financial performance was primarily driven by its macadamia nut operations. The company's investment in the new X-ray machine also suggests a focus on improving product quality and pricing for its macadamia nut business.
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