Tanganda’s Half-Year Revenue Plunges 27% as Weather Disrupts Tea Production

TANGANDA Company Limited has reported a significant decline in performance for the half-year ended March 31, 2025, with revenues sliding 27 percent to US$8 million, down from US$11 million recorded during the same period last year.

The drop in earnings has been largely attributed to erratic rainfall patterns, which severely disrupted tea production across the group’s estates. As a result, the company’s net profit tumbled 73 percent to US$539 983 from US$2 million recorded in the previous comparable period.

“Revenue for the half year of US$8 million was 27 percent lower than the prior year figure of US$11 million due to the impact of late rains on tea production and formal retail challenges that weighed down,” said Tanganda Company Limited chairperson Mr Herbert Nkala in the group’s interim financials.

Bulk tea production dipped by 6 percent to 4 736 tonnes, further compounding the group’s challenges. Although the first quarter bore the brunt of unfavourable weather, improved rainfall in the second quarter offered a glimmer of recovery, raising hopes for stronger export performance by year-end.

The company exported 2 174 tonnes of bulk tea during the half-year period, 28 percent lower than the 3 005 tonnes recorded a year earlier. The average export price also slipped 4 percent to US$1,29 per kg, compared to last year’s US$1,35, as global oversupply and excess stock in Kenya weighed down prices.

While tea volumes remain under pressure, other segments of Tanganda’s diversified operations showed signs of potential. Macadamia nut harvesting began towards the end of the review period, and the group anticipates stronger returns given the firming global prices for the crop.

In a move to broaden its product base and tap into higher-value markets, Tanganda commissioned an avocado oil extraction plant, which began operations in May 2025. Meanwhile, coffee output and exports declined, a result of ageing coffee trees and adverse weather, although new plantings are expected to boost volumes in the near future.

The beverage division also struggled, with packed tea sales falling 18 percent from the previous year. Nonetheless, volumes began to recover in the second quarter, aided by improved rainfall and a more stable exchange rate environment.