• Tanganda posted a US$4.24 million loss after tax, driven by a 26% drop in revenue and weaker export prices
• Production declined across major crops: tea down 11%, avocado down 48%, macadamia down 28%, while exports fell sharply
• Cost pressures, extreme weather and global oversupply in tea, avocado and macadamia markets significantly eroded margins

Harare - Tanganda Tea Company, the leading diversified tea enterprise listed on the Zimbabwe Stock Exchange, has recorded a loss after tax of US$4.24 million for the year ended 30 September 2025, reversal from the US$1.4 million realised in the previous year.

This was attributed to declining revenues, weaker export commodity prices and rising operating costs undermined performance, according to the latest short-form financial announcement.

The company reported a loss before tax of US$5.02 million, a 411% deterioration from 2024, marking one of the toughest trading years in its recent history.

''The company incurred a loss after tax of US$4.2 million during the year , a shift from US$1.4 million in the prevoius year,'' company chairperson Herbet Nkala said.

Revenue fell 26% to US$19.18 million, driven primarily by lower bulk tea exports, significantly reduced macadamia and avocado volumes, and depressed international prices.

Tanganda attributed part of the decline to late rains, extreme heat stress, and foreign currency-indexed operating costs, particularly during the early part of the season.

A weak local formal retail market also affected beverage sales in the first half of the year, although volumes recovered later following favourable exchange-rate policy adjustments.

Bulk tea production fell 11%, from 8,113 tonnes in 2024 to 7,245 tonnes in 2025.
The late onset and inconsistent pattern of rains, combined with extreme heat, depressed production in the early part of the year.

Export volumes also dropped 19%, from 6,137 tonnes to 4,982 tonnes, reflecting weaker international demand.

Oversupply on the global tea market pushed prices down, resulting in a decline in the average export price from US$1.34/kg to US$1.27/kg.

Meanwhile , avocado production volumes declined sharply by 48%, from 3,976 tonnes to 2,080 tonnes, due to heat stress, biennial bearing effects, and a hailstorm in November 2024, which affected fruit quality while exports dropped 72%, from 2,997 tonnes to 844 tonnes, as the market struggled to absorb secondary-grade fruit.

However, all 1,236 tonnes of secondary-grade produce were value-added through crude oil extraction at a joint venture plant established between Tanganda and Trade Link Global BV of the Netherlands.The average selling price improved from US75 cents/kg to US77 cents/kg.

 The average export price of macadamia nuts (nut-in-shell) rose from US$1.84/kg to US$2.06/kg, reflecting post-Covid recovery in global markets.

However, macadamia production volumes decreased 28%, from 1,626 tonnes to 1,167 tonnes, due to increased maturity profile of plantations. Exports consequently fell 38%, from 1,508 tonnes to 936 tonnes.

To mitigate price volatility, the company plans to invest in a cracking plant to add value and increase exposure to the higher-priced kernel market.

Coffee production volumes grew strongly by 46%, rising from 28 tonnes to 41 tonnes, benefiting from improved yields from young trees established under a joint venture with a third-party partner.The average selling price remained steady at US$6.61/kg, in line with the previous year.

Packed tea sales volumes declined 7%, from 1,733 tonnes to 1,610 tonnes, largely due to disposable-income constraints and reduced foot traffic in the traditional retail market during the first half of the year with packaging supply improving in the second half, while policy reforms supported partial demand recovery.

Recovery prospects for 2026 will hinge on improved rainfall patterns, better crop yields, and stabilising global commodity prices. Forecasts of stronger rainfall for the 2025/26 season are expected to ease irrigation pressures, reduce energy costs, and improve output across estates.

A rebound in international demand  particularly in premium markets for tea, macadamia and avocado will be essential in restoring profitability. Tanganda is also expected to pursue aggressive cost-containment, operational efficiencies, and strategic value-addition investments to support a return to earnings growth.

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