It was boom time for Tanganda. The company realised a net profit of $4.8 billion in the six months to April more than double the $2.3 billion it made for the year ending October. Net profit for the first half of last year was $560 million.
Sales shot up from $1.6 billion to $7.2 billion beating those for the year to October which stood at $5 billion. Local sales increased by 134 percent from $375.3 million to $878.9 million while exports rocketed by 421 percent from $1.2 billion to $6.3 billion.
Tea production only increased marginally from 7 460 tones to 7 494 tonnes. Outgrower deliveries were down by 34 percent due to problems of the land reform programme. Chipinge experienced a shortage of plucking labour but this problem is being rectified.
International tea prices remained static but there was a small increase towards the end of the half.
The company says it had excellent maize and soya yields and was able to feed its people and 3 000 school children on its estates. It says this programme will continue into next year.
The beverage division was adversely affected by price controls and a shortage of packaging. The shortage of milk and sugar exacerbated the situation.
The company says a second production line at Tingamira should be commissioned this month and should enhance its earnings.
The removal of price controls and the adjustment of the exchange rate should augur well for the company, but it says there is need to constantly review the exchange rate in view of escalating inflation.