Online Reporter
Business Writer
TANGANDA Tea Company has posted improved third-quarter financial results, with robust export sales helping to cushion the group against persistent domestic pressures.
In its latest trading update, the listed beverage and agricultural group reported that revenues were buoyed by increased export volumes across key product lines.
The company stated, “Export sales volumes for tea and avocados recorded growth, underpinned by firm demand in regional and international markets.”
Management noted that the uplift in foreign currency earnings enabled the group to maintain financial stability, despite rising local costs.
Although the trading update did not disclose detailed figures, the emphasis on export receipts pointed to stronger foreign currency liquidity within the business.
Tanganda’s diversified operations delivered a mixed but largely positive performance during the quarter.
The company highlighted the continued contribution of high-value crops to overall revenues.
“The agricultural segment contributed positively, with avocado and macadamia nut exports sustaining revenue growth despite softer prices,” the update read.
Demand for avocados in both regional and offshore markets remained firm, helping to offset a global decline in macadamia nut prices.
The tea segment also performed well in external markets, although management acknowledged subdued consumption on the domestic front.
Diversification across crops is proving vital for the group, with avocado and macadamia exports providing stability against cyclical challenges in tea demand.
The company’s beverage operations, focused on packaged tea, have come under pressure locally due to weakened consumer purchasing power. However, export channels for bulk tea continued to show steady growth.
The trading update also highlighted progress in Tanganda’s renewable energy programme. The company stated, “Solar power projects at three estates have significantly reduced reliance on the national grid.”
This investment has played a key role in stabilising operations, particularly as Zimbabwe continues to experience persistent electricity supply disruptions. By generating power internally, Tanganda has been able to maintain consistent production while mitigating exposure to volatile energy costs.
Analysts noted that this positions the company ahead of its peers in addressing one of the country’s most pressing industrial challenges.
Looking ahead, management said the group would continue to rely on exports and efficiency gains to sustain growth.
With firm demand for avocado and tea exports, the company expects these segments to remain central to its performance.
The trading update clearly outlined the strategy: sustaining high-value crop exports, protecting foreign currency inflows, and consolidating renewable energy investments to underpin operations.
Investment analyst Gerald Amon commented, “For corporates like Tanganda, sustaining foreign currency inflows is the lifeline. It allows them to balance their books and continue investing in production despite cost pressures.”
Market watchers said the outlook suggests a cautious but stable trajectory.
Mr Amon added, “The business model is becoming more export-driven and less vulnerable to domestic shocks. As long as Tanganda maintains its export markets and manages costs effectively, its medium-term prospects remain solid.”
Tanganda’s third-quarter results underline a company increasingly anchored in its export business and renewable energy strategy.
With exports and efficiency improvements expected to shape its future, the group appears well-positioned to navigate the coming quarters with measured confidence.
