BUSINESS REPORTER
Zimbabwe’s largest tea producer, Tanganda Tea Company Limited is upbeat about its growth prospect after implementing a variety of strategies to address various economic headwinds.
The economy has been battling inflationary pressures due to currency volatility , climatic changes and deepened electricity shortages.
In a statement accompanying the half year results to March 31, 2023, Tanganda chairperson Herbert Nkala said the company remained focused on its strategic value addition thrust and cost management to mitigate pressures on profit margins notwithstanding the operating environment challenges.
“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.
Revenue for the half year to March 31, 2023, grew by 70% to ZWL$10.97bn from ZWL$6.46bn in the comparative period.
Profit after tax for the period increased by 24% to ZWL$1.47bn from a profit of ZWL$1.18bn in the comparable period.
Agriculture bulk tea production of 5 582 tonnes, despite the late onset of the rainy season exhibited noteworthy endurance being 6% lower than prior year production of 5 935 tonnes.
Bulk tea exports of 3 415 tonnes, 9% below 3 747 tonnes, followed the seasonal production trend.
The export average selling price firmed slightly to US$1.45 per kg from prior year average selling price of US$1.43 per kg.
The avocado and macadamia harvest commenced in earnest at the end of the reporting period.
The board has recommended not to declare an interim dividend and profits earned are to be reinvested into the business.
Given the volatility of the exchange rate and the inflationary pressures it has caused, the economic and operating environment is anticipated to remain challenging.
