BY MTHANDAZO NYONI
Tanganda Tea Company Limited, an agricultural trader listed on the ZIMBABWE Stock Exchange, announced a 7% decline in revenue for the six months ended March 31, 2022, compared to the same period a year earlier, due to a drop in export sales.
The company said yesterday that its revenue was $1.9 billion in the reporting period after exports fell 31%.
“The timing of the recognition of macadamia nut export revenue has resulted in an apparent decline in revenue,” company chairman Herbert Nkala said.
“The macadamia export market is shifting to the kernel instead of the traditional inshell nut and revenue from these exports will be recognized in the second half of the fiscal year.”
Pretax profit for the period, on an inflation basis, was $589 million, compared to $749 million a year earlier.
“Profitability was affected by the disparities between the increase in production costs and the evolution of the exchange rate,” he said.
The exchange rate depreciated by 69% during the period under review against inflation of 73% year-on-year.
Nkala said that although loose tea production for the period of 5,935 tonnes was 12% lower than the previous year’s levels due to dry weather in December 2021 and February 2022, loose tea exports of 3,747 tonnes was 14% higher than the 3,278 tonnes sold in the comparable period. period of last year.
He said the average export selling price firmed up slightly to US$1.43 per kg from the previous year’s average selling price of US$1.41 per kg.
“Harvesting of avocados and macadamia nuts started in earnest at the end of the reporting period and revenues are recorded in the second half of the fiscal year,” Nkala said.
Coffee exports amounted to 96 tonnes, up 14% from what was achieved the previous year.
“The average export selling price of USD 6.67 per kg remained slightly higher than the USD 6.50 realized the previous year. The company benefits from its diversified activities,” he said.
In the beverages segment, the company said the COVID-19 pandemic and the Russian-Ukrainian war created global logistical and supply challenges.
However, packaged tea sales volumes held up well at 933 tonnes, 4% below 1,033 tonnes the previous year.
Yields of avocado and macadamia are expected to increase as the maturity profile of plantations improves over the next three to five years.
Nkala said solar power plants built in three of Tanganda’s five estates have significantly reduced reliance on electricity from the national grid.
“Further benefits from the investment are expected to be fully realized once full cross-linking and net metering are implemented before the end of 2022,” he said.
The company has invested in new machinery at its Mutare packaging plant in line with its value addition strategy.
Tanganda is known for growing coffee, macadamia nuts and avocado.
It exports 80% of its tea products and about 90% of its avocados.
Tanganda listed on the ZSE in February, with management optimistic about the positive fallout.
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