Tanganda Reports Stronger Profits, Targets US$8m Capital Raise

By Tinotenda Bhunu

HARARE – TANGANDA Tea Company has reported a steady start to the financial year, posting modest revenue growth and a significant improvement in profitability for the first quarter ended 31 December 2025, while advancing plans to raise US$8 million through a renounceable rights offer.

The operating environment during the quarter was characterised by macroeconomic stability, underpinned by tight monetary policy, low inflation and sustained foreign currency inflows. This provided a relatively predictable backdrop for exporters such as Tanganda.

Bulk tea production increased by 5 percent to 1,530 tonnes from 1,463 tonnes in the prior year, supported by the early onset of rains. Export volumes rose by 3 percent to 1,170 tonnes. Notably, packed tea sales recorded strong growth of 37 percent to 453 tonnes, largely driven by improved packaging material availability and increased volumes sold into the informal sector. The company also indicated that avocado and macadamia harvests will commence in the second quarter, signalling further diversification of revenue streams.

Revenue for the quarter grew by 5 percent to US$4.65 million from US$4.44 million in the prior year. Profit before tax rose markedly to US$538,497 from US$353,917, reflecting improved cost control and operational efficiencies. The stronger profit growth relative to revenue suggests margin improvement, particularly from value-added segments such as packed tea.

Tanganda is progressing with a proposed US$8 million capital raise through a renounceable rights offer, with an Extraordinary General Meeting scheduled for 18 February 2026 to seek shareholder approval. The capital injection is expected to support expansion initiatives, including orchard development, processing capacity upgrades and working capital, while strengthening resilience against climate variability.

With stable earnings and improving margins, the capital raise appears to be growth-driven rather than distress-led. The critical test for management will be whether the additional funding translates into accelerated revenue growth and sustained returns for shareholders in the medium term.

Tinotenda Bhunu is an economist and emerging thought leader specializing in economic policy, entrepreneurship, and development in fragile economies. With a sharp focus on market reforms, private property rights, and sustainable growth, he transforms complex economic challenges into actionable solutions that empower communities and shape the future of Zimbabwe and Africa. LinkedIn: https://www.linkedin.com/in/tinotenda-bhunu-114645208?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=android_app