Tanganda Tea Company is currently in discussions to migrate its listing from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), a move that is expected to facilitate a capital raise of approximately US$7.7 million through a renounceable rights offer.
As an established agribusiness, Tanganda specializes in the production, packaging, and distribution of tea, coffee, avocados, macadamia nuts, and spring water. In a notice to shareholders, the company indicated that further details regarding the migration will be shared in a detailed circular.
“The company is engaged in discussions that will lead to an extraordinary general meeting of members to consider and approve the migration of Tanganda’s listing to the Victoria Falls Stock Exchange,” the notice stated.
The VFEX, a US dollar-denominated exchange, is gaining popularity as it expands through new listings and product offerings. Since its launch in October 2020, VFEX has attracted listings across various sectors, including mining, financial services, tourism, hospitality, and clothing. Justin Bgoni, the CEO of VFEX, noted earlier this year that the exchange aims to secure more than six new listings by the end of 2024, appealing to both domestic and foreign companies.
In a trading update for the quarter ending June 30, 2024, Tanganda reported that its bulk tea production yield reached 7,293 metric tonnes. Although this was impacted by a delayed onset of rains in the first quarter, it aligned with the previous year’s output. The company emphasized that demand for its packaged tea products remains strong in both local and regional markets, focusing on sustained market diversification.
ALSO READ: Mnangagwa Mourns Loss of Driver Found Deceased After Conference
However, export volumes for the quarter fell by 9% to 4,504 metric tonnes, down from 4,959 metric tonnes in the prior year, attributed to the timing of sales as production peaked in the third quarter. Packed tea volumes also dropped by 11%, from 1,459 metric tonnes the previous year to 1,303 metric tonnes in the current period.
“Cumulative variance against the prior year decreased in the third quarter due to packaging supply constraints and effective working capital management. We achieved a 50% growth in packed tea export volumes within the region,” the trading statement revealed.
Additionally, Tanganda saw a significant increase in macadamia production, growing 61% to 1,487 metric tonnes compared to 921 metric tonnes the previous year, benefiting from improved yields as plantations matured. However, nut-in-shell exports declined by 33% from 735 metric tonnes to 494 metric tonnes due to a delayed marketing season.
Financially, the company’s revenue for the quarter was stable at US$3.4 million, consistent with the prior year. However, for the nine months ending June 30, 2024, revenue dipped by 5% to US$14.5 million from US$15.3 million in the previous year. The group’s profit after tax also saw an 8% decrease, falling to US$1.2 million from US$1.3 million the prior year.
Despite these challenges, Tanganda noted that yields for both avocado and macadamia continue to improve due to the maturation of its plantations.
