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Business Reporter
Tanganda Tea Company says it is engaged in discussions that will result in the migration of its listing to Victoria Falls Stock Exchange (VFEX), which will also see the group raise of US$7,7 million through a renounceable rights offer.
Tanganda, listed on the Zimbabwe Stock Exchange (ZSE), is an agribusiness company that produces, packs, and distributes tea, coffee, avocados, macadamia nuts and spring water.
The company, in a notice to shareholders, said further details of the transaction will be provided in a more detailed circular.
“The company is engaged in discussions that will culminate in the company calling for an extraordinary general meeting of members for the purposes of considering and approving the migration of Tanganda’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange,” reads the notice.
The company added that it is aiming for a capital raise by way of a renounceable rights offer to raise circa US$7,7 million.
VFEX, a US dollar-denominated stock exchange, is increasingly becoming the preferred stock exchange as it continues to evolve through new listings and new product development.
Since its inception in October 2020, VFEX has attracted listings from various sectors such as mining, financial services, tourism, hospitality, and clothing.
Mr Justin Bgoni, the VFEX chief executive earlier in the year, said the bourse continues to attract listings from both domestic and foreign companies and is targeting more than six new listings by the end of this year.
In a trading update for the quarter to June 30, 2024, Tanganda’s bulk tea production yield of 7 293 metric tonnes was 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 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 metric tonnes from 4 959 metric 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 metric tonnes were 11 percent below 1 459 metric 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 trading statement.
The company’s macadamia production volumes grew by 61 percent to 1 487 metric tonnes from a prior-year volume of 921 metric tonnes as yield per hectare improved with plantation maturity profile.
“The 33 percent decline in nut-in-shell exports from 735 metric tonnes achieved prior year to 494 metric 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.
Online Reporter