Tanganda Tea Company posts 26% revenue drop, US$4.2M loss as weather impacts yields
Tanganda reports weaker earnings as adverse weather conditions hit agricultural output and overall financial performance.
ZIMBABWE – Tanganda Tea Company Limited has reported a 26% decline in revenue for the financial year ended 30 September 2025, with earnings falling to US$19.2 million compared to US$25.8 million in the previous year.
The company attributed the revenue decrease primarily to late rains and severe heat stress, which negatively affected yields across its estates.
The decline in output contributed to Tanganda’s shift into a loss-making position. The company posted a net loss after tax of US$4.2 million, a reversal from the US$1.4 million profit achieved in 2024.
Operating profit also turned negative, with the company recording an operating loss of US$3.98 million. Basic and diluted losses per share stood at (1.63) US$ cents, contrasting with the prior year’s earnings of US$ 0.52 per share.
Agricultural production was significantly constrained during the period. Bulk tea output fell 11% to 7,245 tonnes, while avocado volumes declined by 48% following heat stress and a hailstorm. Macadamia nut production also dropped 28%.
Coffee, however, registered a 46% increase as plantings continued to mature.
In the Beverage division, packed tea sales volumes fell 7%, though the business experienced a notable recovery in the second half of the year as packaging supply challenges eased.
According to the company, the operating environment featured relative macroeconomic stability supported by a steady local currency. However, tight liquidity conditions limited consumer spending power.
Broader agricultural operations continued to face difficulties such as high input costs and recurring power shortages, prompting the company to depend more on its solar infrastructure. The economy remains heavily dollarized, with approximately 80% of transactions occurring in USD.
Chairman H. Nkala stated that the weaker performance resulted from the adverse weather patterns that disrupted agricultural productivity.
Management highlighted that although the Beverage division faced a challenging first half due to difficulties in the formal retail sector, improvements followed in the second half after favourable adjustments to government exchange rate policies.
Looking forward, the company expects stability in the operating environment and anticipates improved results in the coming year. Forecasts for the 2025–26 agricultural season indicate normal to above-normal rainfall, which is expected to support stronger yields.
Tanganda plans to enhance operational efficiencies, broaden its markets, and optimize value across its product lines.
The company is also exploring capital-raising initiatives, including a proposed Renounceable Rights Offer to raise US$8 million for working capital and essential capital expenditure.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
