- Tanganda Tea Company is pursuing a US$8 million rights offer to strengthen its balance sheet and fund expansion initiatives
- Quarterly revenue surged 65% to US$5.6 million, though the company posted a US$774,762 loss after tax due to lower crop volumes and ongoing investment in value-add processing
- Production was hit by climatic shocks, with avocado output down 47% and macadamia nuts down 43%, but resilience came through improved tea and coffee sales and the launch of avocado oil export
Harare - Tanganda Tea Company, the leading diversified tea enterprise listed on the Zimbabwe Stock Exchange, is taking decisive steps to strengthen its balance sheet and fund expansion, announcing plans to raise US$8 million through a rights offer to shareholders and the investing public.
The initiative comes as the company reports a resilient operational performance for the third quarter ended 30 June 2025, despite challenging climatic conditions and intermittent power disruptions.
‘’The company is actively pursuing capital raising initiatives through a Rights offer to raise USD8 million,’’ reads the trading update.
The operating environment remained relatively stable, bolstered by the sustained stability of the local currency exchange rate.
Tight market liquidity, however, continued to suppress formal retail demand, while the company navigated operational inefficiencies caused by sporadic power outages.
Bulk tea production for the quarter reached 6,826 tonnes, 6% below the prior year’s 7,293 tonnes, primarily due to a delayed rainfall onset earlier in the financial year while exports of bulk tea fell 19% to 3,646 tonnes from 4,504 tonnes.
Packed tea and coffee sales registered 1,200 tonnes, 8% lower than last year, though third-quarter volumes rebounded 11% as exchange rate adjustments eased pricing distortions and stimulated trade.
Avocado production, impacted by a November 2024 hailstorm and the biennial bearing cycle, declined 47% to 2,121 tonnes.
Innovative recovery strategies included channelling affected fruit to a new avocado oil processing factory at Tingamira Estate, a joint venture with Trade Link Global BV of the Netherlands.
Exports of the processed avocado oil are underway, with revenues from fresh fruit exports expected to be recognized in the final quarter of the financial year.
Macadamia nut harvests also faced climatic hurdles, with production down 43% to 849 tonnes due to extreme heat during the nut set period. Exports, however, exceeded prior-year levels, with 520 tonnes shipped, a 5% increase from 494 tonnes.
In terms of financial performance ,the company’s revenue for the quarter surged 65% to US$5.6 million from US$3.4 million the prior year, driven by increased trade volumes following exchange rate liberalization with revenue for the nine months ended 30 June 2025 totaled USD 13.7 million, a modest 6% decline from USD 14.5 million in the previous year.
The company recorded a loss after tax of US$774,762, compared to a profit of USD 1.2 million in the same period last year, reflecting the combined effects of lower crop volumes and continued investment in value-add processing facilities.
Looking ahead , the company remains optimistic betting on the policy adjustments easing inflationary pressures, and the stable exchange rate environment supporting improved trade pricing.
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