BY KUDZAI KUWAZA
ZIMBABWE Stock Exchange agro-dealer Tanganda Tea Company has set its focus on cost management measures to curb the adverse impact of galloping inflation and currency volatility to its profit margins.
The country’s economic crisis has deepened, with a rapidly depreciating local unit which is trading at more than $850 to the greenback on the parallel market amid runaway inflation that soared to 256,9% in July from 191,6% in June.
In a trading update for the third quarter ended June 30, 2022, Tanganda secretary Sharon Kodzanai said inflationary pressures were expected to continue as a result of currency volatility and global inflation.
“The company is focusing on cost management to mitigate the adverse impact of rising inflation and exchange rate volatility to profit margins,” Kodzanai revealed.
“The company is, however, optimistic about its prospects during the last quarter of the financial year.”
She said despite the instability caused as a result of the Russia-Ukraine war, bulk tea export volumes achieved for the nine months were 7% above the same period in the prior financial year.
Kodzanai, however, revealed that production volumes were 7% below prior year following a prolonged dry spell at the onset of the season.
“Coffee export volumes were 14% above same period prior year. Packed tea sales volumes remained resilient though 5% below prior year due to global shipping and supply crises and depressed disposable incomes on the domestic market,” she said.
Tanganda’s revenue for the quarter 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 nine months ended June 30, 2022 grew 84% in historical cost terms and declined by 6% in inflation-adjusted terms.
Avocado production of 3 494 tonnes was 12% above 3 108 tonnes achieved in the same period prior year, with macadamia nuts’ harvest of 1 072 tonnes being 2% above prior year’s 1 048 tonnes.
“Revenue from exports of avocado fruit and macadamia nuts is expected to be recognised in the last quarter of the financial year,” Kodzanai added.