Business Reporter
TANGANDA TEA COMPANY (TTC) has commended the country’s healing economic environment on the back of the plans to approve the capital raise decision reached recently.
Management described the operating environment as one of macroeconomic stability which yielded predictability in the operating environment.
“The operating environment was supported by tight monetary policy, low inflation, and sustained foreign currency inflows. This stability contributed to strong operational performance,” the company said.
The Zimbabwe Stock Exchange (ZSE) listed company said it is pursuing its proposed US$8 million capital raise through a rights offer and is finalising a circular to shareholders.
“The proposed capital raise by way of a Renounceable Rights Offer to rise US$8 million is progressing well.An Extraordinary General Meeting of members to consider and approve the transaction is scheduled for February 18 2026,” said the company in this week’s Trading Update.
In the first quarter period ended December 2025, Tanganda reported a solid start to its financial year, with revenue for the first quarter growing by 5% to US$4,65 million, up from US$ 4,44 million in the corresponding period last year.
The company significantly narrowed its pre-tax loss, posting a loss of USD 538,497, which marks a substantial improvement from the prior year’s loss of USD 853,917, demonstrating enhanced operational efficiency.
Bulk tea production volumes for the quarter increased by 5% to 1,530 tons, driven by the early onset of rains. Consequently, bulk tea export volumes saw a 3% rise to 1,170 tons. Packed tea sales volumes experienced remarkable growth, surging by 37% to 453 tons. The company noted that the avocado and macadamia harvest is set to begin in the second quarter.
“Looking ahead, the outlook is cautiously positive, with a projected national economic growth of 6.6%, supported by resilient performance across key sectors. Management expects inflation to continue moderating under prudent fiscal policy. The company has implemented mitigating strategies to address operational challenges and enhance business resilience,” added Tanganda.
