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Business Reporter
TANGANDA Tea Company Limited, the country’s biggest tea producer, says the solar plants constructed at three of its five estates have significantly reduced reliance on power from the national grid.

Further benefits from the investment are expected to be fully realised once full reticulation and net metering have been implemented before the end of the year.

The company has invested in new machinery at the packaging factory in Mutare in line with its value addition strategy and factory conversion efficiencies.

The investment is expected to grow volumes in the regional market.

In its six months financial results ending 31 March 2022, Tanganda said coffee exports of 96 tonnes were 14 percent above 84 tonnes achieved in prior year.

“Although bulk tea production for the period of 5 935 tonnes was 12 percent below prior year, production of 6 762 tonnes due to dry weather in December of 2021 and February this year, bulk tea exports of 3 747 tonnes were 14 percent above 3 278 tonnes sold in the comparable period last year,” said the company.

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.

“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.”

Average export selling price of US$6,67 per kg remained slightly firmer than US$6,50 realised last year.

The company expects avocado and macadamia yields to increase with enhanced maturity profiling of plantations over the next three to five years.

The firm said it is realising the benefit of its diversified operations. With Covid-19 pandemic and global conflict having created global logistical and supply challenges, it said packed tea sales volumes were resilient at 933 tonnes, four percent below 1 033 tonnes in the prior year.

Covid-19

On financial performance, revenue remained resilient at Z$1,9 billion which is however seven percent down from Z$2,1 billion achieved in the same period the previous year.

In historical cost terms, there was a 53 percent growth in revenue to Z$ 1,6 billion from Z$1,1 billion in the prior year.

Profit before tax for the period in inflation terms amounted to Z$589 million compared to Z$749 million achieved the prior year.

“Profitability was adversely affected by the disparities between increase in production costs and movement in exchange rate,” said the company.

“The exchange rate depreciated by 69 percent during the period under review versus year-on-year inflation of 73 percent.

“In historical cost terms profit before tax grew by 36 percent to Z$1,2 billion from Z$929 million in the prior year,” it said.