- Tanganda Tea reports a profit after tax of USD 1.4 million for the year ending September 30, 2024
- Avocado output increased by 84%, rising to 3,976 tonnes due to improved plantation maturity
- Tanganda Tea prioritizes export market development and expanding product range to meet consumer demands
Harare-Tanganda Tea, a company listed on the Zimbabwe Stock Exchange (ZSE), has made a remarkable turnaround, recording a profit after tax of USD1.4 million for the year ended 30 September 2024. This is a significant improvement from the loss of USD3.1 million in the previous year.
This is attributed to the surge in avocado export volumes and firming prices post COVID-19 19 pandemic.
The company's agricultural production also saw notable increases.
Avocado production rose by 84% to 3,976 tonnes, up from 2,156 tonnes in the prior year.
This growth was driven by increased maturity profile of the plantations.
Macadamia production also experienced a significant boost, increasing by 77% to 1,626 tonnes.
However, exports declined by 3% due to logistical issues caused by rescheduled ships.
In terms of tea production, bulk tea witnessed a modest 3% increase compared to the corresponding period in the previous year.
However, 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 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.
To put the avocado production into perspective, with an average price of US$1.34 per kg (similar to the bulk tea price), the total revenue generated from avocado exports would be approximately USD5.3 million (3,976 tonnes x US$1.34 per kg).
Assuming an average price of US$1.34 per kg for bulk tea, the total revenue generated from bulk tea exports would be approximately USD1.8 million (1,508 tonnes x US$1.34 per kg x 0.9, considering the 3% decline).
The company's packed tea sales volumes declined by 7% due to packaging material supply constraints and depressed performance from traditional formal customers.
However, the company's focus on increasing exports led to a 41% growth in packed tea volume in the regional market.
Tanganda Tea will continue to prioritize export market development and expand its product range to cater to evolving consumer preferences.
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