Tanganda profit dips
RYAN CHIGOCHE
Tanganda Tea Company’s profit plunged 86% to ZWL$348m in the six months to March 31 2022 from ZWL$647m reported in the prior comparative period, due to high production costs triggered by currency volatility.
The company chairman Herbet Nkala said: “Profitability was adversely affected by the disparities between increase in production costs and movement in exchange rate. The exchange rate depreciated by 69% during the period under review versus year on year inflation of 73%.”
Revenue for the group dropped 7% to ZWL$1.9bn in the reviewed period from ZWL$2bn reported in the prior comparable period.
The slump was attributed to the dry weather conditions during the period in December of 2021 and February 2022
Bulk tea production stood at 5 935 tonnes, reflecting a 12% decline from 6 762 tonnes reported in the prior comparative period.
Exports, however, increased 14% to 3 747 tonnes from 3 278 tonnes sold in the comparable period in the previous year.
The export average selling price was up at up US$1.43 per kg from prior year average selling price of US$1.41 per kg.
Coffee exports were also 14% higher at 96 tonnes from 84 tonnes achieved in the prior comparative period as the average export selling price remained firmer, moving upwards to US$6.67 per kg remained than US$6.50 realised in the prior year.
Sales volumes for the beverages operations of packed tea, declined 45 to 933 tonnes from 1 033 tonnes achieved in the same period in the previous year due to logistical and supply chain disruptions caused by the Covid-19 pandemic.
The overall export sales plunged 31% to ZWL$830m from ZWL$1.1bn realised in the prior comparable period. Local sales, however, increased 25% to ZWL$ 1bn from ZWL$866m in the year prior.
Nkala is optimistic yields of avocado and macadamia will increase with enhanced maturity profiling of plantations over the next three to five years.
Tanganda constructed solar plants at three of the five estates to reduce the over reliance on power from the national grid.
The company expects to reap more benefits from the investment once full reticulation and net metering have been implemented before the end of 2022.
