Ashly DhaniTanganda Tea Company says bulk tea production yield of 7 293 tonnes in the quarter to June 30, 2024, affected by the late onset of the rains in the first quarter of the year, recovered and was in line with prior year production.
The company, in a trading update, said demand for its packed tea products remains firm both on the local and regional markets, and the focus is on sustained diversification of the market.
However, export volumes for the quarter under review declined by 9 percent to 4 504 tonnes from 4 959 tonnes achieved prior year due to timing of sales as production was more concentrated in the third quarter.
In the period to June 20, 2024, packed tea volumes of 1 303 tonnes were 11 percent below 1 459 tonnes achieved in the previous year.
“Cumulative variance against prior year narrowed in the third quarter due to a combination of packaging supply constraints and working capital management.
“Sustained market diversification to increase exports registered 50 percent growth on packed tea export volumes into the region,” reads the statement.
The company’s macadamia production volumes grew by 61 percent to 1 487 tonnes from a prior-year volume of 921 tonnes as yield per hectare improved with plantation maturity profile.
“The 33 percent decline in nut-in-shell exports from 735 tonnes achieved prior year to 494 tonnes is due to the delayed start of the marketing season.”
In terms of financial performance, the company’s revenue for the quarter under review of US$3,4 million was in line with prior year, while revenue for the nine months ended 30 June 2024 of US$14,5 million registered a 5 percent decline against US$15,3 million achieved prior year.
Group profit after tax declined by 8 percent to US$1,2 million from US$1,3 million achieved in the previous year.
According to the company, yields of avocado and macadamia continue to increase with enhanced plantation maturity profiles.
The company said persistent power cuts due to low water levels at Kariba continued to be experienced.
However, to mitigate power challenges, the company generates a portion of its power requirements through the installed solar systems at three of the five estates.
It said grid tie and net metering will be pursued to leverage excess power generated from solar plants. — BH24
Bongani Ndlovu