Tanganda’s topline jumps 5%
BUSINESS REPORTER
Tanganda Tea Company Limited, a publicly traded tea producer, reported a 5% increase in revenue for the first quarter ended December 31, 2025, driven by improved crop yields, Business Times can report.
The company funded its operations entirely from internal resources during the period.
Company secretary Hillary Kufakunesu attributed the growth to favourable weather conditions.
“Company revenue for the quarter grew by 5% to US$4.65m from US$4.44m in the prior year,” Kufakunesu said.
Despite the top-line growth, Tanganda posted a loss before tax of US$538,497, an improvement from a prior year loss of US$853,917.
Bulk tea production for the quarter reached 1,530 tonnes, up 5% from 1,463 tonnes in the previous year, following early rains. Export volumes increased by 3% to 1,170 tonnes from 1,134 tonnes.
Looking ahead, the company expects production to rise further with the second-quarter harvesting of avocado and macadamia, which could help reverse its loss position.
Packed tea sales volumes saw a significant 37% increase, rising to 453 tonnes from 330 tonnes in the prior year, primarily driven by improved availability of packaging materials and higher sales in the informal sector.
The performance coincides with shareholder approval of an US$8m renounceable rights offer, a strategic move expected to ease the company’s strained working capital and unlock long-delayed recapitalisation efforts.
A renounceable rights offer allows existing shareholders to subscribe for additional shares proportionate to their holdings or sell the rights to other investors. This structure enables companies to raise fresh capital while limiting dilution and giving current shareholders the first opportunity to maintain their ownership.
The resolution was passed unanimously at an Extraordinary General Meeting (EGM) held last week in Harare, clearing the way for the transaction.
Consequently, the rights offer opened on Tuesday this week and close on March 17, 2026.
Should the offer not achieve full subscription, the underwriter, Rutanhi Beverages, will take up any shortfall.
Rutanhi Beverages is a subsidiary of cash-rich diversified conglomerate Innscor Africa Limited.
