Online Reporter
Michael Tome
TANGANDA Company Limited reported a 27 percent decline in revenue to US$8 million for the half-year ending March 2025, down from US$11 million in the same period last year due to late rains that affected tea production.
Resultantly, there was a 73 percent drop in profit after tax to US$539 983, compared to US$2 million in the previous year.
Tea production suffered due to unfavourable weather conditions with bulk tea production decreasing by six percent to 4 736 tonnes.
However, production improved in the second quarter owing to better rainfall, a situation expected to enhance exports by year end.
The company exported 2 174 tonnes of bulk tea, which is 28 percent lower than the prior year’s 3 005 tonnes, at an average export price of US$1.29 per kg, four percent lower than the previous year’s US$1.35 per kg, due to oversupply and stock build-up in Kenya.
“Revenue for the half year of US$8 million was 27 percent lower than the prior year figure of US$11 million due to the impact of late rains on tea production and formal retail challenges that weighed down,” said Tanganda Company Limited chairperson Mr Herbert Nkala in the group’s half-year financials to March 2025.
Macadamia nut harvesting commenced towards the end of the half-year period, and the company anticipates higher earnings given the firming prices globally. This development comes as the company has established an avocado oil extraction plant, which began operations in May 2025.
Coffee production and exports declined due to ageing coffee plants, scheduled uprooting and unfavourable weather patterns. However, volumes are expected to improve as new coffee plants mature. The beverage segment also faced challenges with packed tea sales declining by 18 percent compared to the prior year. Volumes, however, began to recover in the second quarter, also benefiting from a stabilised exchange rate.
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