- Bulk tea production dropped by 26%, totaling 1,463 tonnes compared to the same period last year
- The tightening of monetary policy to address inflation negatively impacted market activity and limited credit availability
- The company reported a 12% decline in revenue, down to USD 4.4 million from USD 5 million
Harare-Tanganda Tea,a diversified company listed on the Zimbabwe Stock Exchange (ZSE), has faced significant challenges in its production across key categories in the first quarter ended 31 December 2024, attributed to inadequate electricity supply, tight liquidity and the El nino induced drought.
Bulk tea production witnessed a decline of 26% to 1 463 tonnes compared to the corresponding period in the previous year.
‘’The monetary policy stance on tightening liquidity while addressing inflation, weighed down aggregate market activity as well as limited credit availability in the market resulting in the slowing down’’ the company said.
The late arrival of rains also led to an 11% decrease in bulk tea exports to 1 134 tonnes from 1 274 achieved in the comparative period.
On the other hand, the selling price of bulk tea also declined from US$1.44 per kg to US$1.34 per kg due to Kenya's stored bulk tea.
Sales volumes of packed tea witnessed a decrease of 31% to 330 tonnes from 475 tonnes.
This decline was attributed to the prevalent on the formal wholesale and retail market which constitute the bulk of the packed tea customers.
With production and sales volumes going down across various categories, the company reported a 12% decline in revenue to USD 4.4 million from USD5 million.
According to the company, 286 tonnes of macadamia nuts whose export was delayed in the previous financial year due to logistical issues caused by rescheduling of ships was subsequently shipped during the quarter under review.
On the upside, the agriculture sector is expected to rebound this year on account of the La Nina weather phenomenon typically associated with normal to above normal rainfall in the second half of the financial year.
Looking ahead, the company is putting mitigating strategies to enhance process efficiencies and manage costs in order to improve its performance.
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