Tea Giant Tanganda Reports Strong Quarter Amid Production Challenges

Tanganda Tea Company Limited recorded a 65 percent jump in revenue for the third quarter ending June 30, 2025, but warned that subdued exports, erratic rainfall, and exchange rate pressures continue to weigh on operations.

Quarterly revenue climbed to US$5.6 million from US$3.4 million in the same period last year, driven mainly by stronger pricing. However, cumulative earnings for the first nine months of the financial year slipped 6 percent to US$13.7 million, compared to US$14.5 million in 2024.

The tea producer said bulk tea output declined by 6 percent to 6,826 tonnes due to late rains, while export volumes contracted 19 percent to 3,646 tonnes. On the upside, sales of packed tea and coffee rose 11 percent during the quarter, though overall nine-month volumes were 8 percent lower at 1,310 tonnes.

Avocado harvests slumped 47 percent to 2,121 tonnes from 3,976 tonnes last year, with the drop linked to a November 2024 hailstorm and the crop’s natural biennial bearing cycle. Macadamia production also fell sharply, down 43 percent to 849 tonnes, as extreme heat disrupted the nut-set period. Despite the decline in output, macadamia exports increased 5 percent to 520 tonnes.

Management noted that while exchange rate liberalisation has brought some stability, the company continues to face headwinds, including subdued demand in formal retail, liquidity constraints, and power supply disruptions.

To strengthen its balance sheet, Tanganda plans to raise US$8 million through a rights issue. The company said its performance outlook hinges on consistent policy, stable exchange rates, and effective cost control measures.