ZIMBABWE – Zimbawe Stock Exchange-listed agro dealer, Tanganda Tea Company Limited, has reported a 7% drop in revenue to ZWL1.9 billion (US$5.25m) for the six months ended March 31, 2022, from ZWL 2.061 billion (US$5.69m) achieved same period of the previous year.
Overall, the period under review was characterized by high inflation and exchange rate volatility. Annual inflation which receded to 51% in September 2021 has been increasing and ended on 73% in March 2022.
Towards the end of the reporting period, geopolitical instability between Russia and Ukraine broke out on 24 February 2022 resulting in broader ramifications in respect of global inflation and increased costs of commodities.
Although bulk tea production for the period of 5 935 tonnes was 12% below prior year production of 6 762 tonnes due to dry weather in December of 2021 and February 2022, bulk tea exports of 3 747 tonnes were 14% above 3 278 tonnes sold in the comparable period of last year.
The export average selling price firmed up slightly to US$1.43 per kg from prior year average selling price of US$1.41 per kg.
The pandemic and global conflict created global logistical and supply challenges but packed tea sales volumes were resilient at 933 tonnes 4% below 1 033 tonnes in prior year.
Meanwhile coffee exports of 96 tonnes were 14% above 84 tonnes achieved in prior year. Average export selling price of US$6.67 per kg remained slightly firmer than US$6.50 realized prior year. The company is realizing the benefit of its diversified operations.
The macadamia export market is said to be gravitating towards kernel instead of the traditional nut in shell.
Avocado and macadamia harvest commenced in earnest at the end of the reporting period and the revenue is recorded in the second half of the financial year.
Yields of avocado and macadamia are expected to increase with enhanced maturity profiling of plantations over the next three to five years.
Despite the decline in top-line performance, profit before tax for the period in inflation terms amounted to ZWL 589 million (US$1.62m) compared to ZWL 749 million (US$2.06m) achieved prior year in historical cost terms it grew by 36% to ZWL 1.265 billion (US$3.49m) from ZWL 929 million (US$2.56m) in the prior year.
During the period under review, the company was unbundled out of Meikles and successfully relisted on the Zimbabwe Stock Exchange (ZSE).
Tanganda was initially listed in 1963 and remained listed until 2008 when it delisted following the merger with Kingdom Financial Holdings, Cotton Printers and Meikles Africa Limited.