Farai Mabeza, Senior Staff Writer 
TANGANDA Tea Company (Tanganda) says it remains focused on its strategic value addition thrust despite challenges in the operating environment pushed by both local and external factors.
The diversified group’s chairman, Herbert Nkala, said Tanganda would also focus on cost management to mitigate pressures on profit margins.
“The first half of the financial year was volatile, characterised by currency instability, which increased upward inflationary pressures due to the adverse impact from the pass-through effect of exchange rate depreciation.
“In addition, climatic changes and deepened electricity shortages further weighed down economic activity over the reporting period,” Nkala said in a statement accompanying the company’s financial statements for the six months ended March 31, 2023.
“On the global markets, continued geopolitical tensions, disruptions to supply chain and trade fragmentation resulted in significant slowdown of economic growth.”
Herbert Nkala, Tanganda chairman
Revenue for the half year grew by 70 percent to $10,97 billion from $6,46 billion in the comparative period in inflation adjusted terms.
Profit after tax for the period increased by 24 percent to $1,47 billion from a profit of $1,18 billion in the comparable period.
“Bulk tea production of 5 582 tonnes, despite the late onset of the rainy season, exhibited noteworthy endurance being six percent lower than prior year production of 5 935 tonnes.
“Bulk tea exports of 3 415 tonnes, nine percent below 3 747 tonnes followed the season production trend,” Nkala said.
The export average selling price firmed slightly to US$1,45 per kg from the prior year’s average selling price of US$1,43 per kg.
“The avocado and macadamia harvest commenced in earnest at the end of the reporting period,” Nkala added.
Despite the liquidity challenges and waning consumer demand due to reduced disposable income on the local market, Tanganda reported that packed tea sales volumes of 929 tonnes remained resilient, seven percent below the 993 tonnes achieved in the prior year.
“The economic and operating environment is expected to remain difficult, with the backdrop of continued exchange rate volatility and the resultant inflationary pressures.
“The company is optimistic that it has put in place necessary mitigatory strategies to navigate the difficult terrain during the remaining part of the financial year,” Nkala said.
Tanganda recently said it had invested US$8 million in solar projects with plans to further develop three solar mini plants for a cumulative total of US$4 million over the next three years, describing solar energy as an absolute necessity for local companies in the face of rolling power cuts. newsdesk@fingaz.co.zw
