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Avocado exports spur Tanganda revenue
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Listed tea producer, packer, and distributor, Tanganda Tea Company (TTC), reported a revenue increase to US$25.7 million for the financial year ended September 30, 2024, primarily driven by strong avocado exports.
Presenting the company's annual report, TTC board chairman Herbert Nkala stated that revenue grew by 9% from the previous year's US$23.6 million due to a rise in avocado export volumes and improved selling prices following the easing of COVID-19 restrictions.
"The company achieved a profit after tax of US$1.4 million, recovering from a loss of US$3.1 million recorded in the previous year," said Nkala.
Avocado production surged to 3,976 tons, an 84% increase from the prior year's 2,156 tons, attributed to the maturation of plantations. Export volumes also rose by 40% to 2,997 tons, up from 2,148 tons in the previous year. The strengthening of export prices to an average of 75 US cents per kilogram, compared to 44 US cents per kilogram in the prior year, further bolstered revenue.
The company managed to sell 60% of its non-exportable secondary-grade avocadoes for oil extraction and the retail sector, while 40% remained unsellable. However, TTC plans to direct previously unsellable secondary-grade produce toward crude oil extraction in the upcoming financial year.
Macadamia production also saw a significant increase of 77% to 1,626 tons, compared to 921 tons in the previous year. However, exports slightly declined by 3% to 1,508 tons from 1,551 tons, mainly due to logistical challenges, including rescheduled shipping that affected the last consignment of 286 tons.
Conversely, packed tea sales volumes declined by 7%, falling from 1,873 tons in the prior year to 1,733 tons. This was attributed to packaging material supply constraints, weaker demand from traditional formal customers, and overall macroeconomic conditions.
Looking ahead, Nkala warned that the operating environment is expected to remain challenging due to currency volatility and inflationary pressures. Additionally, the effects of the El Niño-induced drought are likely to persist until the next harvesting period in April 2025.
Presenting the company's annual report, TTC board chairman Herbert Nkala stated that revenue grew by 9% from the previous year's US$23.6 million due to a rise in avocado export volumes and improved selling prices following the easing of COVID-19 restrictions.
"The company achieved a profit after tax of US$1.4 million, recovering from a loss of US$3.1 million recorded in the previous year," said Nkala.
Avocado production surged to 3,976 tons, an 84% increase from the prior year's 2,156 tons, attributed to the maturation of plantations. Export volumes also rose by 40% to 2,997 tons, up from 2,148 tons in the previous year. The strengthening of export prices to an average of 75 US cents per kilogram, compared to 44 US cents per kilogram in the prior year, further bolstered revenue.
Macadamia production also saw a significant increase of 77% to 1,626 tons, compared to 921 tons in the previous year. However, exports slightly declined by 3% to 1,508 tons from 1,551 tons, mainly due to logistical challenges, including rescheduled shipping that affected the last consignment of 286 tons.
Conversely, packed tea sales volumes declined by 7%, falling from 1,873 tons in the prior year to 1,733 tons. This was attributed to packaging material supply constraints, weaker demand from traditional formal customers, and overall macroeconomic conditions.
Looking ahead, Nkala warned that the operating environment is expected to remain challenging due to currency volatility and inflationary pressures. Additionally, the effects of the El Niño-induced drought are likely to persist until the next harvesting period in April 2025.
Source - NewZimbabwe
