LISTED tea producer, packer and distributor, Tanganda Tea Company has defied the odds presented by the Russia-Ukraine war, and has posted export growth of 7% above the similar comparative period.
In a recent update, the company saw tea exports performance recording significant growth when compared to a similar period in 2021.
“Despite the geo-political instability in Russia-Ukraine, bulk tea export volumes achieved for the nine months were 7% above the same period in the prior financial year, however production volumes were 7% below prior year following a prolonged dry spell at the onset of the season,” the firm said.
“Coffee export volumes were 14% above the same period prior year.”
The move is in sync with the current government’s thrust which has seen the government encouraging local companies to export as part of a broader strategy to achieve forex self-sufficiency, both at company and national level.
During the period ended June 30 2022, the Tanganda’s revenue was 135 % ahead of the previous financial year in historical cost terms and 3% below the comparative period in inflation adjusted terms. Revenue for the period grew by 84% in historical cost terms and declined by 6% in inflation adjusted terms.
Packed tea sales volumes remained resilient though 5% below prior year due to global shipping and supply crisis and depressed disposable income on the domestic market. Avocado production of 3 494 tonnes was 12% above 3 108 tonnes achieved in the same period prior year.
Macadamia nuts harvested of 1 072 tonnes were 2% above the prior year of 1 048 tonnes.
Revenue from export of avocado fruit and macadamia nuts is expected to be recognised in the last quarter of the financial year with profit after tax exceeding the same period of last financial year in both inflation adjusted and historical cost terms.
“Inflationary pressures are expected to remain on the rise driven mainly by the continued exchange rate depreciation and general rise in global inflation.
“The company is focusing on cost management to mitigate the adverse impact of rising inflation and exchange rate volatility to profit margins. The company is, however, optimistic about its prospects during the last quarter of the financial year.” – Newzim