Categories: Stories

Tanganda brings some good news

It is very rare to get good news these days, but tea company, Tanganda, had an “exceptional” performance in the six months ending April with profit attributable to shareholders increasing six- fold from $10.6 million last year to $66.7 million.

The profit was also more than double the profit for the whole year ending October 1997 when the company only realised an after tax profit of $24 million. Turnover stood at $206.7 million compared to $94.7 million for the six months to April 1997 and $176.5 million for the 12 months to October.

The company says this exceptional performance was due to the depreciation of the Zimbabwe dollar, tea production exceeding expectations and export prices of tea and coffee being higher than those for the previous season.

Production of tea was 6 382 tonnes in the six months to April compared to 5 294 tonnes in the first half of 1997. Production for the full year to October 1998 is expected to be above 8 800 tonnes up from last year’s 7 746 tonnes.

Sales of green coffee are expected to increase from 326 tonnes for 1997 to 600 tonnes this year.

The company now intends to eliminate all borrowings by the end of the current financial year.

It has even brought forward the construction of the Avontuur Dam because conditions are now favourable and this will safeguard the young tea at Avontuur estate.

It also says dams on its estate are presently spilling.

(28 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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