Online Reporter
Nokuthaba Brita Ncube, [email protected]
TANGANDA Tea Company Limited says it is pursuing alternative routes to market while maintaining relationships with traditional wholesale, retail, and catering customers, despite recording a decline in packed tea sales volumes.
In its trading update for the first quarter ended December 31, 2024, Tanganda reported that packed tea sales volumes for the quarter were 31 percent below the previous volumes of 475 tonnes.
“This was due to challenges prevalent in the formal wholesale and retail market, which constitute the bulk of the packed tea customer base,” said Tanganda.
According to the company, this move aims to create a balance of growth without hindering the recovery and performance of its traditional customers.
During the period under review, revenue declined by 12 percent to US$4,4 million from US$5 million recorded in the previous year.
“The company suffered a loss before tax of US$853 917 during the quarter due to a decline in tea production volumes,” the firm stated.
Additionally, the company noted that an inadequate electricity supply disrupted productivity.
Tanganda further pointed out that the late onset of the rains negatively impacted bulk tea production for the quarter under review, resulting in a 26 percent decline in volumes to 1,463 tonnes from 1,986 tonnes produced in the previous year.
As a result, export volumes declined by 11 percent to 1,134 tonnes from 1,274 tonnes achieved in the same period the previous year.
Commenting on the latest monetary policy statement, the firm lamented the Reserve Bank of Zimbabwe’s (RBZ) decision to reduce exporters’ currency retention threshold from 75 percent to 70 percent, further affecting the viability of exporters.
Meanwhile, a consignment of 286 tonnes of macadamia nuts, whose export was delayed in the previous financial year due to logistical issues caused by the rescheduling of ships, was subsequently shipped during the quarter under review.
Tanganda has also implemented mitigating strategies to enhance process efficiencies and manage costs to improve performance.
The company stated that it will continue to pursue sustainable market diversification to expand into regional and international markets.
