Tanganda Tea records 12% revenue decline amid late rains, eyes VFEX listing
ZIMBABWE – Tanganda Tea Company Limited has reported a 12 percent drop in revenue for the first quarter ended December 31, 2024, citing the late onset of rains as a key factor affecting production.
In its latest trading update, the company revealed that revenue declined to US$4.4 million, down from US$5 million in the same period in 2023. As a result, Tanganda suffered a pre-tax loss of US$853,917 for the quarter.
“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, compared to 1,986 tonnes produced in the previous year,” the company stated.
As a result, export volumes fell 11 percent to 1,134 tonnes, down from 1,274 tonnes recorded in the prior-year period. Packed tea sales volumes also dropped by 31 percent to 330 tonnes, compared to 475 tonnes previously.
Tanganda attributed this decline to ongoing challenges in the formal wholesale and retail markets, which form the bulk of its customer base.
Despite these setbacks, the company successfully shipped a 286-tonne consignment of macadamia nuts, which had been delayed in the previous financial year due to logistical issues arising from shipping reschedules.
In response to these challenges, Tanganda is exploring alternative distribution channels while maintaining relationships with traditional wholesale, retail, and catering customers.
“This will create a balance of growth without hindering the recovery and performance of our traditional customer base,” the company stated.
Tanganda has also implemented strategies to enhance process efficiency and manage costs to mitigate the impact of climate-related disruptions.
The company reaffirmed its commitment to sustainable market diversification, focusing on regional and international expansion.
Meanwhile, Tanganda is moving forward with a planned secondary listing on the Victoria Falls Stock Exchange (VFEX) and an US$8 million capital-raising initiative.
In October 2024, the company’s board of directors initially considered delisting from the Zimbabwe Stock Exchange (ZSE) in favor of a VFEX listing but later opted to retain its ZSE listing while issuing new shares on VFEX as a secondary listing.
The company is finalizing a circular detailing interrelated transactions, including the creation of a new class of shares, Class A ordinary shares, to be listed on VFEX.
Existing shareholders will be offered a renounceable rights issue in proportion to their holdings to raise US$8 million.
When Tanganda listed on the ZSE on February 3, 2022, it had a market capitalization of US$134.29 million.
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