Tanganda part ways with Ernst & Young Accountants,...

Tanganda part ways with Ernst & Young Accountants, appoints Axcentium as auditors

Audrey Galawu

Assistant Editor

Tanganda Tea Company Limited has dismissed Ernst & Young Chartered Accountants (Zimbabwe) as auditors for the company for the year ended September 31, 2024.

The dismissal has been due to differences on technical issues with Axcentium, formerly Deloitte, who were the company’s previous auditors appointed as the new auditors for the year ending September 30, 2024.

“Tanganda Tea Company Limited wishes to advise its valued shareholders and the investing public of the termination of the engagement of Ernst & Young Chartered Accountants (Zimbabwe) as auditors for the company for the year ended September 31, 2024 due to differences on certain technical matters regarding the interpretation and implementation of IAS 29 Financial Reporting in Hyperinflationary Economies.

“The company received the approval of the Zimbabwe Stock Exchange to extend the audit services to Axcentium by one year, after which new auditors shall be contracted. Shareholder approvals for the changes shall be sought at the Annual General Meeting,” reads the company notice.

In its trading update for the quarter ended June 30, 2024, the company recorded a revenue of US$3.4 million which was in line with prior year while for the nine months ended June 30, 2024, of US$14.5 million registered a 5% decline against US$15.3 million achieved prior year.

The company performance was affected by power cuts and the El Nino induced drought which negatively affected the agricultural sector.

Profit after tax declined by 8% to US$1.2 million from US$1.3 million achieved in the previous year.

Bulk tea export volumes declined by 9% to 4 504 tonnes from 4 959 tonnes achieved prior year due timing of sales.

“Bulk tea production yield of 7 293 tonnes, affected by the late onset of the rains in the first quarter of the year, recovered and was in line with prior year production.

“Packed tea volumes of 1 303 tonnes were 11% below 1 459 tonnes achieved in the year. Cumulative variance against prior year narrowed in the third quarter due to a combination of packaging supply constraints and working capital management“Sustained market diversification to increase export volumes into the region.”

Macademia production volumes grew by 61% to 1487% tonnes from prior year volume of 921 tonnes, while nut in shell export volumes declined from 735 in the previous year to 494 tonnes due to delayed start of the marketing season.

“The company is optimistic that it has put in place mitigatory strategies to enhance process efficiencies and manage costs in order to improve performance. Yields of avocado and macadamia continue to increase with enhanced plantation maturity profile.

“The demand for our packed tea products remains firm both on the local and regional markets and focus is on sustained diversification of the market.”