Mishma Chakanyuka, Staff Writer 
TANGANDA Tea Company (Tanganda) says it expects the operating environment to remain difficult but is confident that demand for its products will remain firm.
In a trading update, the group said the operating environment is expected to remain difficult owing to inflationary pressures, currency instability, fast rising operational costs and external exogenous shocks.
“The company is focused on exploring value addition options and cost management to mitigate against reduced profit margins and is optimistic about its prospects during the financial year as all crops are looking good and there is firm demand for its products,” Tanganda said.
For the quarter ended December 31, 2022, Tanganda reported a 48 percent growth in revenue compared to the same quarter in the prior year.
The company has tea, macadamia, avocado and coffee plantations in Chipinge district and runs a tea blending and packaging plant in Mutare.
It is the largest producer, packer and distributor of tea and tea products in Zimbabwe.
In terms of production volumes, the company’s bulk tea volumes for the quarter were in line with the comparable prior year period.
Bulk tea export volumes were, however, 33 percent below the prior year, as 52 percent of the total volume was produced in the month of December and would be exported in subsequent months.
Packed tea sales volumes improved by 13 percent, with export volumes in the region growing by 37 percent over the comparable year.
As for macadamia nuts, 325 tonnes were exported during the quarter as nuts in shell.
The group said it continues to focus on exploring value-added options and cost management to mitigate against reduced profit margins as well as strengthen climate resilience.
“The company continues to strengthen its climate resilience through reservoir construction and building efficient irrigation systems for improved productivity. In addition, business interruption caused by ongoing power outages has been significantly reduced by solar plants at three of our five estates,” Tanganda said.
The group said during the quarter the operating environment was characterised by currency volatility, erratic power supplies, reduced agricultural output, the adverse impact of the pass-through effect of rising global inflation and continued geo-political and Covid-related supply disruptions.
In its financial year ended September 30, 2022, the company recorded an inflation adjusted net profit after tax of $582,7 million. This was a rebound from a $318 million loss in the previous year, according to the company’s unaudited accounts.
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